Connect with us

Economy

World Insights: US economy plunges into recession amid pandemic, K-shaped recovery widens inequality – Xinhua | English.news.cn – Xinhua

Published

 on


by Xiong Maoling, Gao Pan

WASHINGTON, Jan. 2 (Xinhua) — After plunging into the worst recession in decades amid COVID-19 shutdowns in 2020, the U.S. economy has been recovering in recent months.

With alarming case spikes and a long-delayed fiscal relief package, however, the recovery momentum is slipping away. Overshadowed even more by a behind-schedule vaccine rollout, the country will only find an uncertain and challenging economic recovery ahead.

What’s worse, the economic pain inflicted by the pandemic has rippled unevenly across a variety of sectors, companies and communities, with certain service-intensive industries, smaller firms, and low-income Americans taking a disproportionate blow. Economists called this a K-shaped recovery, which widens inequality.

DEEP RECESSION, SLOW RECOVERY

Amid COVID-19 shutdowns, the U.S. economy shrank at an annual rate of 5 percent in the first quarter of 2020, ending a decade-long economic expansion after the 2008 global financial crisis.

Then the economy went into free fall, dropping at a revised annual rate of 31.4 percent in the second quarter as COVID-19 fallout, registering the largest decline since the government began the records in 1947.

Some 22 million jobs disappeared in March-April, pushing the employment rate up to a staggering 14.7 percent. Economists estimated that at least 100,000 small businesses permanently closed in the spring.

As COVID-19 swept the country, U.S. states, under pressure to reopen the economy, started to deliver plans in late April or early May, regardless of warnings from experts that many states were not yet well prepared due to lack of a plan for large-scale nationwide testing and tracing actions.

“The U.S. situation remains bad and confused, with an absence of a national-level strategy for suppressing the virus, and therefore with no reliable strategy for the economic recovery,” Jeffrey Sachs, economics professor at Columbia University and a senior United Nations advisor, told Xinhua in April 2020.

As businesses gradually reopened, the economy saw a robust rebound in the third quarter of 2020, expanding at a revised annual rate of 33.4 percent, though the performance still fell short of the pre-pandemic level.

Meanwhile, the unemployment rate has been falling, yet at a slowing pace in recent months. Weekly initial jobless claims, though largely trending down, increased in four weeks since the start of November, indicating a stalled recovery in the labor market.

The total number of COVID-19 cases in the United States topped 20 million on Friday, according to the Center for Systems Science and Engineering at Johns Hopkins University.

“The recovery is slowing down in the U.S. economy because of the surge in the coronavirus,” Adam Posen, president of the Washington-based think tank Peterson Institute for International Economics, recently told Xinhua via email. “The coronavirus surge was avoidable, but unfortunately our political leadership did not succeed in preventing it.”

LONG-OVERDUE RELIEF

As businesses and families grappled with the pandemic-induced recession, lawmakers approved a 2.2-trillion-U.S.-dollar relief package in late March 2020 to salvage the economy, followed by months of deadlock over the size and scope of the next bailout.

The two parties spent so long to reach a deal because some politicians in Washington considered it not a help for them to win the election, and House Speaker Nancy Pelosi decided to wait for a meaningful size package, Posen said.

Recent COVID-19 spikes and a slowing recovery piled extra pressure on the lawmakers, and they eventually passed a 900-billion-dollar COVID-19 relief package, along with 1.4 trillion dollars in regular government funding for the rest of the fiscal year.

The relief plan allows another round of direct payments for individuals and federal unemployment benefits, both at a reduced level, as well as more funding for the Paycheck Protection Program to support small businesses, and for schools, testing and the distribution of vaccines.

U.S. President Donald Trump, in a last-second statement, asked Congress to boost stimulus checks to 2,000 dollars each for individuals. Democrats embraced the outgoing Republican president’s call, but it was frowned upon by some Republicans. After a hold-up of the legislation for days, Trump signed the bipartisan package into law on Sunday night.

While the long-awaited relief package will likely cushion the impact of COVID-19, economists and some lawmakers considered it not enough to bolster the economy, calling for more aid measures and efforts to reign in the virus.

Officials of the U.S. Federal Reserve forecasted the country’s economy to contract by 2.4 percent in 2020, better than a previous projection in September 2020 of a 3.7-percent decline. For this year ahead, the central bank predicted a 4.2-percent growth.

“Though state revenues have been coming in better than feared, the absence of additional aid will lead to spending cuts and layoffs,” Ryan Sweet, senior director at Moody’s Analytics, said in an analysis, adding that the latest stimulus will likely help avoid a double-dip recession.

K-SHAPED RECOVERY

The United States is going through a K-shaped recovery, as some sectors, companies and workers fared fine or even better after the downturn while the rest experienced a steep decline, U.S. President-elect Joe Biden and some economists said.

Specifically, industries like technology and retail recovered fairly well, but travel, entertainment and food services continued to hover at a low level, with the virus keeping people at home.

A Washington Post article showed that between April and September of 2020, 45 of the 50 most valuable publicly traded U.S. companies turned a profit, but that the majority of firms cut staff and gave the bulk of profits to shareholders.

Meanwhile, low-income families, those without a college degree, and Black and Hispanic Americans were hit hardest by the pandemic and are largely still struggling to recover, said a Pew Research Center survey released in September.

U.S. Federal Reserve Chair Jerome Powell has repeatedly stressed that the burden of the virus-induced economic downturn is not evenly spread. “Those taking the brunt of the fallout are those least able to bear it,” he said.

“Recessions always accelerate inequality,” Posen told Xinhua. “In some ways, this recession is less unequal because of the size and breadth of the unemployment assistance, and because some lower-wage workers have retained their jobs in critical services, unlike in a usual recession.”

In some ways, however, “this recession is more unequal than others because the very wealthiest (top 5 percent or 1 percent) are gaining disproportionately from their equity shares in companies gaining market power,” he added.

Posen said the prospect for the U.S. economy from April through December 2021 is quite good, with the situation expected to improve after the distribution of vaccines.

“What I am unable to forecast confidently is how bad things get between now and the spring with widespread vaccine distribution, and how many people — mostly women — who dropped out of the labor force to look after children and family members are able to come back into employment,” he said. Enditem

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

China’s Economy Picks Up in January, Building on 2020’s Recovery – Yahoo Canada Finance

Published

 on


GlobeNewswire

Resveratrol Market to reach US $115.7 million by 2028 – Global Insights on Key Trends, Strategic Initiatives, Growth Drivers, COVID-19 Impact Analysis, Leading Players and Business Opportunities: Adroit Market Research

The rising prevalence of cancer, cardiovascular diseases, and neurological diseases is expected to play a pivotal role in the growth of the resveratrol market in the coming years.Dallas, Texas, Jan. 26, 2021 (GLOBE NEWSWIRE) — The global resveratrol market is growing at a CAGR of 7.9% by 2028. An increase in prevalence of chronic disorders, surge in resveratrol supplements, and wide application areas of resveratrol are factors driving the global resveratrol market. Adroit Market Research report on global resveratrol market gives a holistic view of the market from 2018 to 2028, which includes factors such as market drivers, restraints, opportunities and challenges. The market has been studied for historic years from 2018 and 2019, with the base year of estimation as 2019 and forecast from 2020 to 2028. The report covers the current status and future traits of the market at global as well as country level. In addition, the study also assesses the market based on Porter’s five forces analysis and positions the key players based on their product portfolio, geographic footprint, strategic initiatives and overall revenue. Prominent players operating in the global resveratrol market have been studied in detail. Request for a sample of this research report @ https://www.adroitmarketresearch.com/contacts/request-sample/503 Resveratrol is a natural stilbene and a non-flavonoid polyphenol, a phytoestrogen that predominates in antioxidant, anti-inflammatory, cardioprotective, and anti-cancer properties. It occurs naturally in many plants, such as grapes, and berries, and aids in assistance with respect to pathogenic infections. The first of its kind resveratrol was extracted from the root of a fast-growing shrub called the Japanese knotweed. Resveratrol is known to reverse multidrug resistance in cancer cells and is used in combination with drugs. Rapid rise in chronic ailments such as cancer, cardiac diseases, and neurological disorders will augment the demand for resveratrol products and supplements. However, side effects like gastrointestinal upset, headache, nausea and fatigue associated with resveratrol usage will hamper the growth of the market in the future. The global resveratrol market has been segmented based on product, application, form, distribution channel, and region. Based on product, the global resveratrol market is categorized into natural and synthetic resveratrol. Natural resveratrol segment is further sub-divided into grape seed extracted and knotweed extracted. Application-wise, the global resveratrol market is categorized into cosmetics, pharmaceuticals, dietary supplements and others. Cosmetics segment held substantial share of the market in 2019 owing to increase use of resveratrol in cosmetics owing to its anti-aging properties. Based on form, the global resveratrol market is classified as liquid, solid/powder and pill. Liquid resveratrol segment dominated the global market in 2019 owing to its ability to get quickly absorbed by the body and act as a free radical scavenger. The liquid form of resveratrol has naturally occurring proanthocyanidins (OPCs) from grape seed extract, VitaBerry, cranberry, and pomegranate, which complement resveratrol’s cellular and cardiovascular support properties. On the basis of distribution channel, the global resveratrol market is segmented into retail stores, online stores and others. Browse Complete Report with Table of Contents @ https://www.adroitmarketresearch.com/industry-reports/resveratrol-market North America dominated the global resveratrol market in 2019. High consumption of resveratrol supplements owing to its protective benefits for several health conditions across U.S. and Canada is a major factor for its dominant share. Asia Pacific is estimated to be the most lucrative market for resveratrol during the forecast period and is expected to grow at a faster pace from 2020 to 2028. Increasing demand from countries such as India and China and increasing awareness regarding the health benefits of resveratrol and high consumption in Asian countries such as Japan and China, as a traditional herbal remedy will drive the market in the region. Major players operating in the global resveratrol market include DSM, Evolva, Jeunesse Global, RevGenetics, Sabinsa Corporation, Maypro Industries, Hangzhou Great Forest Biomedical Ltd., Laurus Labs, Tianjin Jianfeng Natural Product R&D Co., Ltd., and Shanghai Natural Bio-engineering Co., Ltd. (Hunan Keyuan Bio-products Co., Ltd) among others. Based on segmentation global resveratrol market is fragmented into product, application, form, distribution channel and regional industry. By product, global resveratrol market is splintered into natural resveratrol, grape seed extracted, knotweed extracted & synthetic resveratrol. Based on application the market is classified into dietary supplements, cosmetics, pharmaceutical & others. Based on form the market is classified into liquid, solid/powder, pill. In terms of distribution channel, resveratrol market is segregated into retail stores, online stores & others. Further, resveratrol market is also fragmented on the basis of regional diversification, identifying Europe, North and South America, MEA and APAC as major growth spots in data science platform market. Direct purchase the report @ https://www.adroitmarketresearch.com/researchreport/purchase/503 Table of Content: 1. Introduction 2. Research Methodology 3. Market Outlook 4. Resveratrol Market by Product, 2018-2028 (USD Million) 5. Resveratrol Market by Application, 2018-2028 (USD Million) 6. Resveratrol Market by Form, 2018-2028 (USD Million) 7. Resveratrol Market by Distribution Channel, 2018-2028 (USD Million) 8. Resveratrol Market by Region, 2018-2028 (USD Million) 9. Company Profiles Browse Related Reports: Global Thoracic Drainage Devices Market Size 2019, by Product (Thoracic Drainage Systems, Thoracic Drainage Kits, Pleural Drainage Catheters, Trocar Drains, Others), by Application (Cardiac Surgery, Oncology & Pain Management, Thoracic Surgery & Pulmonology, General Intensive Care Emergency Medicine, Others), by Region and Forecast 2018 to 2028 Global Wound Debridement Market Size 2019, by Product (Gels, Ointment & creams, Surgical devices, Medical gauzes, Ultrasonic devices, Others), by Method (Autolytic, Enzymatic, Surgical, Mechanical, Others), by Wound Type (Pressure ulcers, Diabetic foot ulcers, Venous leg ulcers, Burn wound, Others), by Region and Forecast 2018 to 2028 Global Sternal Closure Systems Market Size 2020, By Product (Closure Devices, Bone Cement) Procedure (Median Sternotomy, Hemisternotomy, Bilateral Thoracosternotomy) Material (Stainless Steel, PEEK, Titanium) Region (North America, Europe, Asia Pacific, South America, Middle East and Africa) and Forecast 2021 to 2028 Access research repository of Upcoming Reports @ https://adroitmarketresearch.com/upcoming.html About Us: Adroit Market Research is a global business analytics and consulting company incorporated in 2018. Our target audience is a wide range of corporations, manufacturing companies, product/technology development institutions and industry associations that require understanding of a market’s size, key trends, participants and future outlook of an industry. We intend to become our clients’ knowledge partner and provide them with valuable market insights to help create opportunities that increase their revenues. We follow a code– Explore, Learn and Transform. At our core, we are curious people who love to identify and understand industry patterns, create an insightful study around our findings and churn out money-making roadmaps. Contact Us: Ryan Johnson Account Manager – Global 3131 McKinney Ave Ste 600 Dallas, TX 75204 Email ID: sales@adroitmarketresearch.com Phone No.: +1 972-362 -8199 Connect with us: Facebook | Twitter | LinkedIn

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Taiwan economy seen growing 3.61% in fourth quarter on boost from exports: Reuters poll – TheChronicleHerald.ca

Published

 on


TAIPEI (Reuters) – Taiwan’s economy is expected to have expanded 3.61% year-on-year in the fourth quarter, a Reuters poll showed, as the export-dependent island continued to shake off the coronavirus jolt with a return of strong shipments and consumer confidence.

The trade-dependent economy grew 3.92% in the third quarter from a year earlier, in a solid rebound from a 0.58% contraction in the second quarter.

Taiwan, a key hub in the global technology supply chain for tech giants such as Apple Inc, is expected to have posted slightly slower gross domestic product (GDP) growth of 3.61% on year in October-December, according to the poll of 14 economists.

Predications varied widely from growth of 2.1% to as high as 6.83%.

Exports in 2020 rose 4.9% to $345.28 billion, a record high by value for a single year.

In December, Taiwan’s central bank revised up its growth outlook for this year.

It raised its 2020 forecast for GDP growth to 2.58% from 1.6% predicted in September, and projected 2021 growth at 3.68%, compared with 3.28% seen at its last quarterly meeting.

Taiwan’s exports have benefited from the work-and-study from home trend around the world, which has boosted demand for laptops, tablets and other electronics made with components supplied by firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

Taiwan’s largest trading partner China registered faster-than-expected economic growth in the fourth quarter of last year, with GDP up 6.5% year-on-year.

Taiwan’s preliminary fourth-quarter figures will be released on Friday. Revised figures, including details and government forecasts, will be published about three weeks later.

(Poll compiled by Carol Lee; Reporting by Ben Blanchard; Editing by Shri Navaratnam)

Let’s block ads! (Why?)



Source link

Continue Reading

Economy

Taiwan economy seen growing 3.61% in fourth quarter on boost from exports: Reuters poll – TheChronicleHerald.ca

Published

 on


TAIPEI (Reuters) – Taiwan’s economy is expected to have expanded 3.61% year-on-year in the fourth quarter, a Reuters poll showed, as the export-dependent island continued to shake off the coronavirus jolt with a return of strong shipments and consumer confidence.

The trade-dependent economy grew 3.92% in the third quarter from a year earlier, in a solid rebound from a 0.58% contraction in the second quarter.

Taiwan, a key hub in the global technology supply chain for tech giants such as Apple Inc, is expected to have posted slightly slower gross domestic product (GDP) growth of 3.61% on year in October-December, according to the poll of 14 economists.

Predications varied widely from growth of 2.1% to as high as 6.83%.

Exports in 2020 rose 4.9% to $345.28 billion, a record high by value for a single year.

In December, Taiwan’s central bank revised up its growth outlook for this year.

It raised its 2020 forecast for GDP growth to 2.58% from 1.6% predicted in September, and projected 2021 growth at 3.68%, compared with 3.28% seen at its last quarterly meeting.

Taiwan’s exports have benefited from the work-and-study from home trend around the world, which has boosted demand for laptops, tablets and other electronics made with components supplied by firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

Taiwan’s largest trading partner China registered faster-than-expected economic growth in the fourth quarter of last year, with GDP up 6.5% year-on-year.

Taiwan’s preliminary fourth-quarter figures will be released on Friday. Revised figures, including details and government forecasts, will be published about three weeks later.

(Poll compiled by Carol Lee; Reporting by Ben Blanchard; Editing by Shri Navaratnam)

Let’s block ads! (Why?)



Source link

Continue Reading

Trending