Virus will have wide effects on US industry

Significance

Trump on March 16 ordered social distancing and many businesses’ closure for 15 days, to slow COVID-19’s spread and avoid overwhelming hospitals. Transport, tourism, leisure, construction and non-essential retail have been severely affected by shutdowns and reduced demand, while mining and oil and gas have been hit hard by weaker global demand and pricing.

Impacts

• If the informal economy, estimated at about 10% of GDP, flourishes, it could be a short-term stabiliser in some places.
• Ending containment measures prematurely will limit economic damage but trigger new infection waves.
• Further aid packages will likely be needed; Democratic House leaders anticipate two or more additional packages.