The economy of the US seems to be at a risky place right now. It is all in the hands of Congress to save the national economy. There is a fat chance for the country to go through a double-dip recession if there is no COVID-19 relief aid made available before the new year.
The cases of Coronavirus have exceeded 14.8 million alone in the US. This is the highest number of infected in the world. The number of deaths due to the infection has reached almost 282,000.
Opinions Of Economists On COVID-19 Relief Package
The suggestions from the publications of S&P economists pointed out the importance of various relief aids during this time. Almost every situation at hand pointed towards the need for COVID-19 relief aids. The current GDP is sure to decline to cause the recovery to take place not any time before Q2 of 2022. And the increasing spread in the coronavirus infection on top of that.
According to the chief economist of S&P, Beth Ann Bovino, the researchers of the National Bureau of Economic Research has witnessed a fall in the economic activity for several months. The bureau is a private organization formed by various economists. Bovino also pointed out the fact that the shrink in economic activity has reflected in various indicators. These include employment, industrial production, wholesale-retail sales, GDP, and real income.
The chief economist also said that the US will witness a shrink in the economy by 2.3% from October 2020 to December 2020. And this will cause a yearly economic decline of 3.9%. So, in this type of situation, it is imperative for Congress to pass a COVID-19 Relief package of 1trillion USD to make things less bad.