Bad news for the American economy

22.06.2021

The state of the US economy may remain below the pre-pandemic level forever. The calculation of a special index, based on 37 indicators that determine the well-being of residents and conditions in the country’s markets with the onset of the coronavirus, were presented by financial analysts of the American company Moody’s Analytics.

The experts concluded that the population and business in the United States have come a long way after the devastating recession due to COVID-19 in 2020, but the country is close to the point of no return to the standard of living before the dangerous virus and all the related problems. Particularly, the Back-to-Normal Index includes data on lending volumes, the number of applications for unemployment benefits and job advertisements, information about domestic flights and hotel occupancy rates. On June 18, the figure reached a pandemic-era maximum of 93 percent, a favorable mark of 100.

According to analysts, the main obstacles to the recovery of the economy are problems with tourism due to coronavirus restrictions and a new format of work – most office workers have remained at a distance, which is making structural changes to the traditional business. Additionally, the number of applications for unemployment benefits is still twice as high as before the pandemic. The acceleration of economic growth is possible with an increase in interest of investors in American projects, taking into account the new structure of the market.