MACROECONOMIC

FINAL PRESENTATTION

 Lecturer: PhD. Paya

 Members:
 Hoang Quoc Binh (David)
 Vo Thi Tu Vy (Emma)
 Nguyen Thi Diem Suong (Laura)
 Tran Thi Hoang Thao (Bella)
BRIEF INFORMATION
• The United States has maintained its position
as the world's largest economy since 1871.
• In 2019, The Gross Domestic Product (GDP)
value of USA represented 23.6% of the world
economy. The GDP in the USA was worth
21.429 trillion US dollars in 2019.
• In 2019, consumer prices index for all items
rose 2.3 percent compared to 2018. (Bureau
of Labor Statistics, 2020)
• The U.S. is the world's largest importer with
13.4% share of global imports equal to $2.6
trillion of goods. The second-largest exporter,
with exports valued at 1.64 trillion US dollars. (Duffin, 2020) (Desjardins, 2019)
(Duffin & Feb, 2020) (Silver, 2020)
 CONDITION & POSSIBLE CAUSE

 Growth declined by 5% in the first quarter,

signaling the onset of the 2020 recession.
Company spending fell by 10.5%.
 Exports are down by 8.7%.
 Imports decreased by 15.5%.
 After the loss of 881,000 jobs in March. In April
2020, the US economy lost an unprecedented
20.5 million job. This led to the U.S.
unemployment rate in April 2020 was 14.7%.

(Amadeo, 2020 June 8) (Moody's Analytics)

 CONDITION & POSSIBLE CAUSE
USA’s economy is being hard hit by three major threats which are the severe Covid-19 pandemic, the
Trade War with China and the low oil price.

The Trade War with

China
 The second contributor to the US current
economic situation is the Trade War with
China
 President Donald Trump administration has
been constantly imposing severe import
tafiffs on many of China’a major exporting
products which were worth more than $360
billion.
 In retaliation, China has also levied
significant higher import tariffs on more
than $110 billion worth of US products.
(BBC news, 2020)
 CONDITION & POSSIBLE CAUSE
The low oil price.
 Last but not least, another factor that is
posing direct threat to the US economy is the
low oil price. According to CNN, thanks to
the boom in production, the US has
transformed from an oil consumer to the
largest producer in the world.
 After Russia and the Saudi Arabia failed to
reach an agreement on the volume produced
and price of oil, it is the case that the US
should be worrying about a new possible
economic crisis backed by the coronavirus
pandemic
 Saudi Arabia keeps producing oil at higher
volume and decreasing oil price while almost
the whole world is being paused which means
no long travel, not much fuel used.
(Pettinger, 2020) (Isidore, 2020)
 MAIN CAUSE AND
SOLUTION
 Coronavirus disease 2019 (COVID-19) is defined
as illness caused by a novel coronavirus now
called severe acute respiratory syndrome
coronavirus 2 (SARS-CoV-2; formerly called
2019-nCoV), which was first identified amid an
outbreak of respiratory illness cases in Wuhan
City, Hubei Province, China
 It was initially reported to the WHO on December
31, 2019. On January 30, 2020, the WHO
declared the COVID-19 outbreak a global health
emergency. [2, 3] On March 11, 2020, the WHO
declared COVID-19 a global pandemic, its first
such designation since declaring H1N1 influenza
a pandemic in 2009.

6
 MAIN CAUSE AND
SOLUTION
Covid-19 pandemic

According to The Balance, since the outbreak of the

Covid-19 pandemic, 20.7 million jobs have been lost,
GDP growth was -0,5 in first quarter 2020 which
indicates a possible recession
Interest rates have fallen significantly. Even though 2.5
million of the jobs previously lost were gained back in
May, this slight progress is probably unable to bring
the country’s economy to the normal balance.
(Amadeo, 2020 June 5)
 MAIN CAUSE AND
SOLUTION
 Two main policy tools have been utilized are fiscal policy
and monetary policy
 Fiscal policy is the way government collects and spends
funds that are intended to stimulate or support the
economy. (Lawrence & Weber, 2020, p.167). The Federal
Reserve has cut interest rates down to zero to keep
businesses running and residents purchasing. (Rushe,
2020)
 Monetary policies are ones that affect the supply,
demand, and value of a nation’s currency. (Lawrence &
Weber, 2020, p.168). The US government has sent out
$1000 cheque to every single citizen with the total amount
up to $1tn to not only help them make end meet but also
maintain their purchasing power. (Partington, 2020)
 Together with many of other ones, these two policies have
been exercised in the hope of helping the US economy
bounce back to its pre-pandemic status.
8
Duffin, E., & Feb. (2020, February 3). U.S. GDP 1990-2019. Retrieved from
https://www.statista.com/statistics/188105/annual-gdp-of-the-united-states-since-1990/

Silver, C. (2020, April 17). The Top 20 Economies in the World. Retrieved from https://www.investopedia.com/insights/worlds-top-economies/

Bureau of Labor Statistics (2020, January 16). Consumer Price Index: 2019 in review. Retrieved from
https://www.bls.gov/opub/ted/2020/consumer-price-index-2019-in-review.htm

Desjardins, J. (2019, September 23). Mapped: The World's Biggest Importers in 2018. Retrieved from
https://www.visualcapitalist.com/map-worlds-biggest-importers/#:~:text=

Duffin, E. (2020, May 4). Top exporting countries worldwide 2019. Retrieved from
https://www.statista.com/statistics/264623/leading-export-countries-worldwide/

Amadeo, K. (2020, April 15). How Foreign Exchange Reserves Affect You. Retrieved from
https://www.thebalance.com/foreign-exchange-reserves-3306258

Plecher, H. (2020, February 11). United States - distribution of the workforce across economic sectors 2019. Retrieved from
https://www.statista.com/statistics/270072/distribution-of-the-workforce-across-economic-sectors-in-the-united-states/

Amadeo, K. (2020, June 8). Why the 2020 Recession Won't Become a Depression. Retrieved from https://www.thebalance.com/recession-2020-4846657

Shambaugh, J. (2020, March 27). COVID-19 and the US economy: FAQ on the economic impact & policy response. Retrieved from
https://www.brookings.edu/blog/up-front/2020/03/23/covid-19-and-the-u-s-economy-faq-on-the-economic-impact-policy-response/

Lawrence, A. T., & Weber, J. (2020). Business and society: stakeholders, ethics, public policy. New York, NY: McGraw Hill.