We wanted to highlight a recent article in POLITICO Pro by Victoria Guida about how the International Monetary Fund (IMF) forecasts an 8 percent plunge in the U.S. GDP this year. For context, during the Great Recession, the U.S. economy shrank by 2.5 percent.
According to the IMF, “This also suggests a more gradual recovery in the second half [of the year] as fear of contagion is likely to continue.”
Furthermore, the IMF findings echo the recent survey from the National Federation of Independent Business (NFIB), which found that after the Paycheck Protection Program (PPP) runs out, layoffs are on the way for one in ten small businesses. NFIB analysts said, “Those businesses hardest hit by the crisis will likely need additional help.” With restrictions on business operations and sparse consumer spending, this decreased income is likely to continue through the end of the year.
Both reports highlight that even as the economy starts to reopen, businesses are still feeling the impacts of COVID-19, and more needs to be done to keep businesses’ doors open and Americans employed. Both the IMF and NFIB’s findings further substantiate the calls from America’s Recovery Fund Coalition (ARFC) and others for more aggressive action by Congress to support American businesses and the communities relying on them.