COVID-19 SITUATION

COVID-19 is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-

CoV-2). 

It was first identified in December 2019 in Wuhan, China, and has since spread globally, resulting in an
ongoing pandemic. There are 214 countries in the world infected with COVID-19 at the moment. 

As of 9 May 2020, more than 3.93 million cases have been reported across 187 countries and territories,
resulting in more than 275,000 deaths. More than 1.31 million people have recovered.

WORLD ECONOMIC SITUATION AND PROSPECTS

The pandemic is disrupting global supply chains and international trade.

The economic impact is spreading around the world

Global growth could plunge even further if restrictions on movements and economic activities in these
economies would extend beyond the second quarter. The world economy contracted by 1.7 per cent
during the global financial crisis in 2009.

In the worst-case scenario, global GDP could shrink by 0.9 per cent in 2020 instead of growing a
projected 2.5 percent.

Falling tourism, commodity exports, and capital outflows will impact vulnerable countries
The economic crisis will adversely impact sustainable development

Even in many high-income countries, a significant proportion of the population do not have enough
financial wealth to live beyond the national poverty line for three months.

THE US ECONOMY STATUS

United States GDP growth (Source: IBIS World)

2020 GDP growth: 1.5%

• Lowest since 2009

• Economic growth expected to be negative in Q2

• 2021 GDP growth: 2.1%

• Expect GDP growth to pick up second half of 2021

 The US GDP

Consumtion
Investment
Arts, entertainment, recreation, and restaurants constitute
Manufacturing

Source: FOREIGN POLICY RESEARCH INSTITUTE

Considering COVID-19 effect on different industries.

Consumption makes up 67% of the US GDP, but it has slumped as businesses close and as households
hold off on major purchases as they worry about their finances and their jobs.

Investment makes up 19% of GDP, but businesses are putting off investment as they wait for clarity on
the full cost of COVID-19.

Arts, entertainment, recreation, and restaurants constitute 4% of GDP. With restaurants and movie
theaters closed, this figure will now be closer to zero until the quarantines are lifted.

Manufacturing makes up 10% of U.S. GDP, but much of this will be disrupted, too, because global supply
chains have been obstructed by factory closures and because companies are shutting down factories in
anticipation of reduced demand. Ford and GM, for example, have announced temporary closures of car
factories.