Gross Domestic Product, First Quarter 2020 Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Despite some fluctuations, from 2016 until the first quarter of 2020, real GDP was positive. The sharp decline in early 2020 was probably due to the global pandemic, which disrupted the export and import network and significantly reduced citizens’ consumer opportunities. However, the situation should not be expected to improve by the second quarter. Swagel believes that real GDP will decline by 12 percent between April and June 2020, which will be an even more severe decline (Swagel). Moreover, the author believes that the unemployment rate will approach 14%, while the federal budget deficit will be at $3.7 trillion. It should be predicted that when the situation with coronavirus infections begins to disappear, GDP will recover gently and slowly to positive values. At the same time, it is essential to assume that growth will not be significant and rapid, as the data show that positive quarterly GDP fluctuations rarely exceed two percent.

The main reason for the initial decline and then a gradual recovery by several points is the global situation concerning the pandemic. It is known that two levels, microeconomic and macroeconomic, justify GDP growth. From a microeconomic perspective, GDP growth is associated with increased consumer spending on goods and increased employment. Macroeconomic factors usually include a general increase in investment in business and housing construction, growth in exports, and an increase in federal spending. In practice, the situation in the first quarter of 2020 is the opposite — due to the pandemic, a large number of citizens were quarantined and unemployed (Makridis and Hartley 1). This has created a chain of interrelated events that have affected both the fall in exports and the rise in unemployment and impoverishment. As a result, this situation caused a severe drop in GDP. The situation is expected to improve over time, and by the second half of 2020, according to Swagel, GDP will start to grow positively. This is due to the recovery of damaged economic chains, the return of people to work, and increased exports of goods and services.

Works Cited

Aversa, Jeannine. Gross Domestic Product, First Quarter 2020 (Third Estimate). Web.

Makridis, Christos, and Jonathan Hartley. The Cost of Covid-19: A Rough Estimate of the 2020 US GDP Impact. Web.

Swagel, P. “CBO’s Current Projections of Output, Employment, and Interest Rates and a Preliminary Look at Federal Deficits for 2020 and 2021.” CBO, Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, February 21). Gross Domestic Product, First Quarter 2020. https://ivypanda.com/essays/gross-domestic-product-first-quarter-2020/

Work Cited

"Gross Domestic Product, First Quarter 2020." IvyPanda, 21 Feb. 2022, ivypanda.com/essays/gross-domestic-product-first-quarter-2020/.

References

IvyPanda. (2022) 'Gross Domestic Product, First Quarter 2020'. 21 February.

References

IvyPanda. 2022. "Gross Domestic Product, First Quarter 2020." February 21, 2022. https://ivypanda.com/essays/gross-domestic-product-first-quarter-2020/.

1. IvyPanda. "Gross Domestic Product, First Quarter 2020." February 21, 2022. https://ivypanda.com/essays/gross-domestic-product-first-quarter-2020/.


Bibliography


IvyPanda. "Gross Domestic Product, First Quarter 2020." February 21, 2022. https://ivypanda.com/essays/gross-domestic-product-first-quarter-2020/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1