US economic recovery slowing as the Delta variant spread : J Brusuelas

Brusuelas said that there's a significant surge from 12,000 coronavirus cases per day in June


The United States economic recovery slowing down from the Covid-19 pandemic and also due to the spread of the Delta variant of coronavirus and a sizable segment of unvaccinated people.


Joseph Brusuelas, who is chief economist at accounting and consulting firm RSM US LLP said in a blog post, "In the United States, infections have increased to a rate of 157,000 per day, with each loss of life and the use of medical resources and foregone activity taking their toll on economic progress."


Brusuelas said that there's a significant surge from 12,000 coronavirus cases per day in June.


Brusuelas noted that "the refusal of a segment of the US population to accept vaccination" is holding back the overall economic activity and the complete reopening of the economy.


The news agency, Xinhua had reported that nearly 62 percent of the total American population over 12 have been fully vaccinated so far.


Joseph Brusuelas has said, "Businesses that have been scrambling to find workers and input products to meet surging demand are now likely to find customers-and workers-less willing to risk exposure to an unvaccinated person or to an unwitting transmission of the delta variant."


The Chief economist added that his firm has lately degraded its forecast for United States economic growth in the second half of the year.


The economist had said that his firm is at present predicting that the economy to grow by 6.5 percent for the current year with the risk of lower growth should events dictate.


He said that if the coronavirus delta variant spread further, then it is anticipated to cut off over a percentage point off that forecast in the upcoming days or weeks.


Joseph Brusuelas' statement on the economy came after economists at Goldman Sachs has lately degraded their predictions for United States economic growth in the third quarter to 5.5 percent from 9 percent due to the impact of the spread of Delta variant of coronavirus.


The economist has also warned that the fourth wave of the Covid-19 pandemic caused by the spread of the Delta variant has the potential to emulate the peak of infections of earlier this year as the populations move back indoors in the fall and winter again.

India Scanner News Network

Leave a comment