The US economy starts to recover after 100 days into Covid-19 pandemic
After slightly more than 100 days have passed since the beginning of the Covid-19 pandemic, the US economy has seen unprecedented lows, but it seems that recovery is slowly underway. Nationwide lockdowns that required the citizens to stay at home and work remotely, along with the closure of businesses, led the country’s economy into a deep recession.
Almost no businesses in the US remained unaffected by the pandemic, and automotive, hospitality, and tourism industries were hit especially hard. As a result of huge financial losses, the Federal Reserve of the US issued an order to reduce the key interest rate almost to zero and make credit options more widely available.
During 13 weeks of the pandemic, Americans have filed 49.5 million applications for unemployment benefits. This is a result of many people losing their jobs after the staff cuts and business interruptions or closures. The government attempted to support the situation by using trillions of emergency spending dollars, including funds directed to jobless benefits and loans to small businesses.
At the moment, the economy has started to recover, beginning in May, because of the reopening of many states for business. Retail sales increased by 17.7% and around 2.7 million people regained their jobs, reducing the unemployment rate in the US.