United States economic indicators released Thursday confirmed that the Covid-19 pandemic caused a historic drop in the country’s GDP, as well as a worrying growth in requests for unemployment benefits.
The main indexes of Wall Street falls more than 1%, the price of oil cuts 2.5%, while the rate of the North American Treasury bonds, a refuge asset, yield 0.54% per annum for the 10-year issue. European stock markets record losses of around 3 percent.
He risk country Argentine increases by fourth wheel in a row. This Thursday, the JP Morgan indicator grows by 15 units, to 2,295 points basic.
The American economy registered a 9.5% drop in the second quarter due to the effects of the pandemic, in the largest debacle recorded in the country’s history, according to statistics published this Thursday in the first of three official estimates for the April-June period.
Also, the number of new applicants for unemployment benefits rose slightly to 1.43 million. Reports had been on the decline after peaking in March, but the new outbreaks slowed the downward trend and the number of layoffs is set at historically high levels.
The quarterly US GDP debacle was the largest since records began in 1947
In the January-March quarter, The world’s largest economy fell 5%. After a promising recovery in June, in July the number of those infected increased again. That led several states to back down on reopening their economies when sectors like travel and commerce began to revive.
“Many high-frequency indicators support our estimate of a slowdown in the pace of recovery since the beginning of July, as households and businesses reduced their activity as Covid-19 infections resurfaced,” said the firm. IHS Markit in an analysis.
Depends on the virus
Economists warn that the situation will not improve until the pandemic ends and the Federal Reserve (Fed) said on Wednesday that “the course of the economy will depend significantly on the direction of the virus.”
Another concern on the horizon is the lack of agreement in Congress for a new aid package to those affected by the pandemic after the assistance of 2.2 billion dollars approved in March.
Weekly applications for helplessness in the US grew to 1.43 million
Business aid and supplemental unemployment benefits, which expire on Friday, helped keep consumer spending afloat and save jobs.
Although it has no weight in the negotiations in Congress, the Fed president, Jerome Powellsaid Wednesday that the recovery will depend on the support provided by the government of Donald Trump and warned that the coronavirus advance is weighing down the economy.
The fall of the GDP The Commerce Department’s reported for the second quarter was the largest for a quarter since 1947. And by far worse than the 8.4% drop in the fourth quarter of 2008, the worst time of the latest global financial crisis.
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