The US economy is predicted to contract by 40% in 2020 although a strong rebound is forecast in the fourth quarter.
The recovery of the economy, however, will be dependent on global conditions as the US economy is more dependent on global demand than it was 50 years ago.
Michal Rozworski, an economist and author, shared an article on the structural forces that are working against the recovery of the US economy.
Although economists have forecast a strong recovery in the fourth quarter of the year, the inherent structural changes that occurred over the last 50 years may not allow the US economy to recover a quickly as predicted.
The US economy is dependent on global demand in various sectors including aerospace, information technology, defence, oilfield services, and finance.
Consumers are more wary of spending on non-essential things related to these sectors in the current uncertain environment created by the Covid-19 pandemic.
Demand in some of these sectors, therefore, may not return to normal and help the economy rebound as predicted by experts.