30 October
Konstantina Beleli, an economist, shared an article on the US economy posting record growth in the third quarter, a direct result of the injection of $3 trillion as part of the pandemic relief package that drove consumer spending.
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However, experts believe that the health and economic damages caused by the Covid-19 crisis could take over a year for the country to recover.
The gross domestic product (GDP) surged at 7.4% on a year-on-year basis in the third quarter, after having dipped to a low of 9.0% from April to June this year.
The government’s relief package has helped boost consumer spending which alone contributed 76.3% to the spike in GDP.
The Commerce Department, however, stated that the 33.1% annualised growth rate was not enough to ease the human tragedy caused by the global pandemic, with thousands of US citizens still unemployed and more dead.
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By GlobalDataDepleting funds and uncertainties around a second round of rescue, a swell in cases and restrictions on businesses, are indicative of a slow recovery from the pandemic.
Meanwhile, Adam Tooze, a historian and professor, re-tweeted on the US economy having to grow at 4.5% annually starting from the fourth quarter of 2020 to return to normalcy by the end of 2022.
