Saloni Subha ( Intern Journalist ) All the Nation across the world has revealed the extent of economic devastation due to Covid-19 outbreak. Six months after the World Health Organization has declared Coronavirus a pandemic, this has infected more than 17 million people across the world. It has inflicted global economic mayhem.
Most developed a country’s economy like the US has suffered its sharpest downturn since at least the 1940s. The pandemic has also ruined businesses across the country and left millions of Americans out of work. Goods domestic products have reduced to 9.5% in the second quarter from the first, a drop that equals an annualized pace of 3.29%, the commerce department’s initial estimate showed on Thursday.
That is the sharpest annualized downturn in quarterly recorded since 1947 .”The staggering news of the historic decline of the Gross domestic products in the second quarter should shock us all”, informed the US chamber of commerce executive vice president Neil Bradley while giving statement.
France’s economy shrank 13.8% in the second quarter whereas Spain went recession after it’s GDP slumped by 18.5% of Portugal’s economy contracted by 14.1%, and Italy’s by 12.4 %. For the currency union as a whole it was the biggest decline since the records started in 1995. For the border 27- country European Union, not all of those members use the euro, output sagged 11.9%.
“It’s a shocking drop, but completely understandable as the economy was shut for a considerable period during the quarter”. Said Bert Colijin, senior economist at ING Bank. Historic contractions have also been recorded in Germany (10.1% ), Belgium ( 12.2% ), Australia (10.7)% and Mexico (17%).
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