The U.S. economy (U.S.) reported growth in the third quarter driven by the Covid-19 pandemic aid of more than $ 3 trillion. However, according to the U.S. administration on Tuesday, the U.S. economy has begun to lose this momentum following the rising Covid-19 case and declining fiscal stimulus.
The United States is in the throes of a resurgence of Covid-19 cases with more than 17.78 million people infected with the Covid-19 pandemic and more than 317,800 deaths.
State and county governments have taken drastic measures such as restrictions on business leading to reduced consumer spending and layoffs. The situation worsened when there was a delay in the additional package of Covid-19 assembly
According to Chris Rupkey, MUFG's chief economist in New York, the growth in the third quarter will not be enough to boost the economy even more in the winter. He added that the only good news is that corporate profits are recovering faster than expected.
Based on figures released by the Department of Commerce, GDP for the third quarter jumped at an annual rate of 33.4%. This figure is revised from the previously reported figure at 33.1%.
The U.S. economy contracted at 31.4% in the second quarter between April and June.
Today, the U.S. House of Representatives finally approved a $ 900 billion coronavirus relief package as part of a government effort to help support the economy and the people affected by the Covid-19 pandemic.
Even so, economists are of the view that this is not enough and it is too late. Furthermore the package is not comprehensive.
