States Begin to Reopen During COVID-19 Crisis

There are signs COVID-19 may be in retreat.

Last week, the Centers for Disease Control reported, overall in the United States, for the week ending April 25 (officially week 17 of the coronavirus), the number of:

· People visiting healthcare providers with COVID-19 symptoms declined.

· Positive tests at public health, clinical, and commercial laboratories declined or remained similar.

· Deaths attributed to pneumonia, influenza, or COVID-19 declined, too, although the percentage remains above normal.

This is good news since some states are beginning to reopen.

Last week, the Bureau of Economic Analysis reported on the early economic impact of COVID-19 and shelter-in-place orders, which were implemented to prevent healthcare systems from being overwhelmed by COVID-19 patients. The U.S. economy contracted 4.8 percent during the first quarter of 2020.

The contraction is expected to be more significant for the second quarter. FactSet estimates the U.S. economy will shrink 27.0 percent, quarter-to-quarter, and finish the year down 3.0 percent overall. That suggests a strong rebound in economic growth as the country gets back to work.

Despite the economic contraction, U.S. stocks finished April with the biggest monthly gain since 1987, reported Colby Smith and colleagues at Financial Times (FT). April’s gains were partly the result of fiscal and monetary support, according to FT. The publication cited a global markets strategist who, “…attributed [April’s] rally in part to the U.S. Congress and the Federal Reserve extending enormous support to the economy and financial markets in the form of relief packages and emergency lending measures.”

The Fed isn’t the only central bank providing unusual support in these uncertain times. The European Central Bank and the Bank of Japan also announced significant lending and bond buying programs last week, reported Dion Rabouin of Axios.

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