People queue in front of a grocery store in Santa Monica after a curfew was imposed in the state of California due to the spread of the corona virus
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With curfew to curb the Corona virus in most US states, the pandemic restrictions have already reduced US daily production by 29 percent, Moody’s Analytics warns in a study.
The full extent of the economic disaster caused by the almost nationwide closure of companies in various industries will only be seen in a few years. However, initial estimates have already been made – and the picture is quite bleak.
According to the Moody’s study, which was conducted after 41 U.S. states closed non-essential companies, California alone lost $ 2.8 billion a day, more than 31.5 percent of the U.S.’s daily gross domestic product (GDP). State.
Production in another 15 states, which account for nearly 70 percent of total US daily GDP, is down $ 12.5 billion. Another 30 states, along with Washington DC, will lose a total of $ 4.9 billion in daily GDP.
According to the rating agency, the economic effects of the corona virus crisis are already more serious than the consequences of the terrorist attacks of September 11, 2001. As a result of the three-week government-ordered lockdown, production in the United States fell by around $ 350 billion , while U.S. production decreased by an estimated $ 111 billion after the September 11 attacks. Moody’s chief economist Mark Zandi said to that Wall Street Journal:
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It’s like Indiana would disappear for a year.
This is a natural disaster. There is nothing in the Great Depression that is comparable to what we are experiencing now.
If the decline continues, it could cost the country 75 percent of annual GDP, Zandi said. However, the strategist does not believe the situation will continue for a long time and expects the situation to improve before the end of the second quarter. The analyst predicts that many U.S. states will cancel their measures before the summer.
On Sunday, the United States recorded more than 310,000 COVID-19 infections, which is approximately 25 percent of the total number of cases worldwide, according to statistics from Johns Hopkins University.
more on the subject – In just one month: Over ten million Americans lose their jobs
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