Coronavirus Tackles U.S. Economy In First Quarter

According to Reuters, coronavirus tackled the U.S. economy, in the first quarter of the year, "at its sharpest pace since the Great Recession." The Commerce Department explained that the gross domestic product tumbled at a 4.8% annualized rate, after expanding at a 2.1% rate in late 2019.

The country wide lockdown included millions of Americans seeking unemployment benefits in late March, including a sharp drop in consumer spending, which makes up two-thirds of economic activity.

Sung Won Sohn, a business economics professor at L.A.'s Loyola Marymount University said, “It’s premature to talk about a recovery at this moment, we are going to be seeing a lot of bankruptcies for small and medium sized businesses.” Kwok Ping Tsang, an associate professor of economics in the Virginia Tech College of Science explained that other factors will also prevent employees from working at 100%.

He adds, “Employees also must juggle child care, home schooling, and more stressors.”