There is a wise saying: "The bigger they are, the harder they fall". Given the enormous size of the US economy, it came as no surprise that it plunged to a record low due to the coronavirus pandemic.
The US economic decline is anticipated to be double-digit. The analysts at Germany's Die Welt expect a record-shattering collapse in the country's gross domestic product. Despite extensive support from the US government, economic output sank considerably in the second quarter as the coronavirus pandemic forced businesses across the United States to close their doors. According to government estimates, the country's economy shrank at a 32.9% annual rate between April and June. The authors of the study state that this is the sharpest quarterly economic contraction in the history of the United States. Against this background, the statement of Federal Reserve Chairman Jerome Powell Powell seems to be more optimistic. He also warned about the biggest drop in GDP on record but left out some shocking details. "The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus," Powell said. "A full recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities," he added.
The only one who firmly believes in the American economy is US President Donald Trump. The American leader hopes for a quick rebound in the world's largest economy in the third quarter of this year. In addition, he wants the economy to be back in full swing as quickly as possible.
