CHINA-US: CORONAVIRUS PANDEMIC ESTIMATED TO SHRINK US ECONOMY BY APPROX US$ 8 TRILLION OVER NEXT DECADE
Projections released by the US Congressional Budget Office (CBO) on June 1 estimated that the fallout from the coronavirus pandemic will shrink the size of the U.S. economy by roughly $8 trillion over the next decade. The CBO said the U.S. economy will grow by $7.9 trillion less from 2020 to 2030 than it had projected in January. That amounts to a 3 percent decline in U.S. gross domestic product compared to its initial estimate. The unemployment rate also jumped from 3.5 percent in February to 14.7 percent in April. Tax revenue plummeted, spending skyrocketed, and the economy quickly contracted after years of growth.
(Comment: Contraction of the US economy and rising unemployment will obviously adversely affect consumer spending and, in turn, impact on China's economy which is oriented towards exports to the US and EU.)
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