Analysis of the Impact of the Epidemic on the Macro-economy of China and United States

Abstract

In 2020, a COVID-19 epidemic plunged the global economy into recession. As a "global pandemic", the Cliff descent of GDP in various countries have proved the negative impact of the epidemic on the global economy to varying degrees, and the economies of China and the United States are no exception. From the macro-economic perspective, the epidemic is essentially a sudden demand shock. Its negative effects are mainly manifested in the economic crisis caused by insufficient effective demand in the short term from the three demand channels of restraining personal consumption, enterprise investment and net export. Therefore, this paper analyses the influence of the epidemic on the national economy from the perspective of consumption, investment and import and export demand. However, due to the severity of the epidemic, the economic structure of various countries and the different economic policies to deal with the crisis, the economic impact of the epidemic on various countries will be different. Therefore, this paper takes China and the United States as research samples to compare and analyze the impact of the epidemic on different economic entities.