Economic impact of the COVID-19 pandemic in the United States ~ Is China Responsible For Covid19 Outbreak!!

The economic impact of the COVID-19 pandemic in the United States is huge. Now China is the numero uno economy of the world. The most developed nation of the world failed to chalk out a strategy to flatten the upward growth curve of Covid19 pandemic. One million people became jobless and the unemployment rate touched 14.7%, which is all-time high. Consumer spending was reduced to a huge extent, which is the prime propellant power of the world economy. According to some USA economist, retrieval of the economy is not in the offing. Regaining the lost shine of the economy will take a couple of years. The complete lockdown was imposed on most affected states to reduce the impact of Covid19 pandemic. The huge number of people applied for unemployment benefits, which will weigh heavily on the economy. The disastrous slump of the economy impacts the value of dollars. Donald Trump's erroneous policy dumped the tag as the world leader and left more space to arch-rival China. On the other hand, China expanded its tentacle to every corner of the space left by the USA. Now China is in a position to dictat the world economy on its own terms.

Economists are trying to analyze the initial economic damage due to the COVID-19 pandemic in the United States. Foreign direct investment has touched a new low. The USA no longer remains the number one choice of foreign direct investment. China with its new-found glory replaced the USA and became the first choice for foreign direct investment. China miraculously flattened the Covid19 pandemic curve and reopened the market, which showed positive GDP growth of 2.3% during the 2020-21 financial year. China has done well on industrial production and international trade. China has become the biggest trading partner of the European Union and offers an opulent Chinese market for European products. China became the biggest exporter of medical gadgets during the Covid19 pandemic and purged the economy from the venomous impact of the recession. The US on the other hand is worst affected by the Covid19 pandemic. More than 0.33 million people perished and 18.5 million affected by coronavirus. Thus the simultaneous Impact Of the Covid-19 Outbreak On the US Economy And Financial Markets is magnanimous.

China becomes first economy to grow since coronavirus pandemic

A group of economists predicted that China will replace the USA as a numero uno economy in 2028. The strength of the Chiese economy hovering around $15.3 trillion, while the USA is far superior to China with an economy of $26 trillion. China registered a huge GDP growth of 18.3%, in March 2021, which is a massive jump from the previous year 4.3 per cent. There is no denying the fact that China used the coronavirus to the hilt and spreads its tentacle to the field, which was purged by the USA. coronavirus emerged from Wuhan an emerging Chinese city and hit the knuckle of the Chinese administration. But China recovered quickly with a two-prong strategy of contact tracing and quarantine without the help of the vaccination process. The USA was a bit slack in its initial response. The sluggish response of the Donald Trump government provides the virus ample time to spread every nook and corner of the USA and bruised the economy of the country, which was on the path of recovery from a decade long recession.

The Chinese strategy is the admix of two prong plans, which run contrary to each other. One is centralised and the other is free-market strategy. Centralised strategy protects those industries which are vulnerable to competition and free-market strategy attracts foreign direct investment (FDI) to China. The disagreement on economic relief dealt a blow to the revival of the economy. On the other hand, the Chinese Communist regime took bold decisions in quick succession to boost the economy. The USA no longer remains the blue-eyed boy for FDI and the main business partner of the USA. World Economic Forum believes that China will become the numero uno economy of the world in 2028.

A trade war between the USA and China has already started and is looming large over the world economy. China's current regime stated that they have no intention to replace the USA as an economic super-power. Still, the USA-China relation followed a declining trend. Current sanctions of the USA on a couple of Chinese goods, which was reciprocated by Chinese sanction on multiple USA companies took the trade war to a new level. The world is looking forward to the normalisation of relations between two giant economic powers USA and China. Joe Bidden's accession to power will help the USA to regain the lost ground and numero uno economic status. The new regime needs to analyze the economic impact of the COVID-19 pandemic in the United States.

IMF predicted that the US economy will reach the pre-coronavirus level before the end of 2021. The disrupted banking sector is the prime reason behind the snail-paced recovery world economy. The government already started to provide much-needed succor to the corporate and banking sector. The tourism industry will be on the path of recovery once the various restrictions removed. The housing market and retail sales already started to swell its periphery. The service industry already showing positive signs. Reduction of anxiety level is the main propellent force behind this development. Consumer spending was high during April 2021. Economic recovery completely depends on public health. The US administration invests $6 trillion for public health. Black Americans and Hispanics were worst affected by the Covid-19 pandemic. The unemployment ratio was higher among the above-mentioned two communities. States relaxed rules related to taxation to provide relief to the citizens already going through the stringent financial crisis. Quick recovery of the US economy would be a boon for the world economy too.

Keywords

1.Economic impact of the COVID-19 pandemic in the United States is huge,

2.Economists are trying to analyze initial economic damage from the COVID-19 pandemic in the United States,

3.China becomes first economy to grow since coronavirus pandemic,

4.Thus the simultaneous Impact Of COVID-19 Outbreak On US Economy And Financial Markets is magnanimous,

5.New regime need to analyze the economic impact of the COVID-19 pandemic in the United States,