The U.S. economy shrank at an alarming annual rate

The U.S. economy shrank at an alarming annual rate of 31,7%, unemployment is on the increase

The U.S. Department of Commerce has stated that The US economy contracted by 31,7% between April and June, which is the worst drop on record. The US GDP collapsed at a -32.9% annual rate  due to the coronavirus pausing the economy.

The booming economy of the USA is affected by the impacts of the spread of the coronavirus, due to which a considerable part of economic activities had to be ceased. It is also unemployment that has reached an all-time high since The Great Depression.

Owing to the rapid spread of the new coronavirus, the U.S. government decided to strangle its economic activity at the end of March. A wide variety of companies like hotels, restaurants, bars and other services had to be closed. Consequently, millions of people had to deal with an unexpected job loss. But services play the most vital part of GDP of the USA.

Since WWII The United States experienced the worst economic collapse in 1958, when Dwight Eisenhower was the president. GDP  collapsed in a quarter by 10% at annual rate at that time.

A report of The United States Department of Labor (DOL) has shown that the number of new applicants for unemployment benefits, which is approximately around 1 million,  has not decreased. It indicates that the labor market’s recovery is currently stagnating, for the coronavirus pandemic has not ceased to exist yet and the financial support of the government is being exhausted.

As far as the currency is concerned, there is a marked decline in the value of the dollar against the euro, which has risen to 1,1835 USD.