The Economy May Go in a Recession Because of the COVID-19 Pandemic

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Cissy Lu, Staff Reporter

The economy may go in a recession because of the COVID-19 pandemic. Many countries affected most by the pandemic have given out trillions of dollars in stimulus packages and aid. Since the COVID-19 situation first occurred, the stock market has been seen going down, as prices for stocks drop and investors cashing out. 

Stimulus packages are put in place to support people and businesses economically but may affect governments in afflicted areas by increasing national debt. Some experts claim that this recession may be worse than the Great Depression in the 1930s. With no apparent stop of the virus, the global economy will worsen, and go in a recession. 

Because many are stuck at home due to social-distancing orders, unemployment rates skyrocketed. It will continue to rise if the number of COVID-19 cases continues increasing with no peak. Large corporations and small businesses alike will be affected the worst by the pandemic since there has been a large surge of job layoffs. Meanwhile, small businesses are forced to temporarily close.