World economic recovery: factors affecting the segment
The American economy is one of the keys in the global market. Therefore, many processes in the world depend on what happens in the U.S.. For a long time, the country remained a reliable bulwark, but with the arrival of the Coronavirus Pandemic, it became clear that there are serious problems here too. As a result of the fact that the US authorities could not neutralize the consequences of the disease in time, the recovery of the world economy slowed down.
Many countries were hard hit last year, especially those whose market depends on the United States. The latter are acutely affected by any fluctuations in the U.S. economy, which has shown vulnerabilities and weaknesses. In addition, increased unemployment in the United States is exacerbating the situation, leading to lower demand for both local and imported goods. These and other factors are not benefiting the global economy, but slowing down its recovery, which could have serious consequences in the future.
The rolling wave of protests in the U.S. has spread to other countries, increasing market volatility. The authorities fear that any fluctuations in the U.S. could affect the mood of its people, which carries too many risks.
The United States accounts for 25 percent of world GDP, and even the strong economies are dependent on the American market and currency. For example, last year, supplies to the United States from Germany decreased by 36%, causing losses to the local budget. Asian countries are also suffering, including Japan, which had to reduce exports to the large American market.
To stabilize the situation, the U.S. authorities are taking various steps. To support economic processes, 3 trillion dollars were sent, but these programs were introduced temporarily and have already been completed.
The biggest decline in American GDP was in the first quarter of last year, when the decline was at 5%, which was the highest level since the financial crisis in 2008.
The national debt of the country was increasing, and in June last year it was 26 trillion dollars, and the growth of one trillion dollars occurred only within a month. According to statistics from the International Monetary Fund, by the end of 2020 it reached the level of 130% of GDP.
Over the past few months, the situation is getting better, the U.S. economy has already seen positive dynamics, but there are still many problems that need to be overcome in the near future for the situation in the world market to begin to recover. However, the pace is still too slow, so hope for the White House and its measures to maintain the segment and improve the situation in the country.