The effects of covid – 19 towards the economy in the US / Natasha Mohd Rasnisham

The Covid-19 has been the centre of attention since the start of the year and since then this health crisis has been the cause of many problems occurring all around the world including what some may call an economic crisis that is happening lately.. According to Thankom Arun (2020), the reason that this health crisis has also turned into an economic crisis is that the spread of the virus has stimulated societal isolation, leading to the closure of capital markets, corporate offices, companies and activities. Another explanation is that the exponential pace at which the virus spread and the increased confusion as to how bad the situation could get led customers, investors and foreign trading partners to flight and protection in consumption and investment.
This health crisis has caused problems for not only in the medical sector, but it also affects the economy as well. According to Miltiadis G. Staboulis (2020), since the start of the pandemic, the global supply chains and international trade has been disrupted and in North America, many industries that involve physical interactions such as retail, trade, leisure and many more are facing numerous complications. As businesses lose their profits, unemployment is likely to increase affecting many people who are losing jobs. Banks are also may be forced to reduce lending, adding to downward pressures in the credit market. Due to travel bans being implemented, the tourism sector is greatly affected, causing the overall GDP to fall. With many restrictions such as travel bans and closure of shops, the growth of GDP will also be affected. Not only that, the stock prices have also fall. In mid-March, the stock market crashed, and in the US, the Dow Jones Industrial Average and S&P 500 index suffered the greatest single-day percentage fall since the 1987 stock market crash. Given that the US is the world's largest economy, the effects of the economy crisis in the US will also affect economies of many countries all across the globe.
The dependent variable is the Gross Domestic Product (GDP) of US. The independent variables are the total number of Covid-19 cases, total new cases and the total deaths cases of Covid-19 in the IS. The sample is in the United States and the data is obtained from the January to October 2020 that is collected from Our World in Data and Ycharts. The study involved the use of panel data, which are multi-dimensional data involving measurements over time. The data is from January to October 2020 in the US.
The expected findings are that there are negative relationships between the variables the total number, total new and total deaths of Covid-19 cases with the GDP of US.