US breaks its own antirecord of the Great Depression

The epidemic of coronavirus infection COVID-19 in the United States provoked an unprecedented “freeze” of economic activity in the country.

US breaks its own antirecord of the Great Depression

This is the conclusion made by experts at Moody’s Analytics, an economic research company that provides software solutions for managing financial risks.

Experts stated that the decline in economic activity reached a record 29%. The authorities of 41 states ordered to suspend the work of enterprises that were not included in the list of strategically important. In particular, restrictions also affected the most densely populated areas, where the percentage of “freezing” reached 80%.

According to the forecasts of analyst Mark Zandi, most regions will begin to recover next summer, but, despite this, the rate of US GDP risks falling to 30%. For comparison, Zandi cited a similar indicator of the times of the Great Depression. Then the level of production collapsed by only 26%.

As News Front previously reported, the United States has become the world leader in the spread of coronavirus. Now there are recorded about 337 thousand infected and almost 10 thousand deaths. Against this background, even JPMorgan, one of the largest US banks, is preparing to stop paying shareholders.

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