why GDP decreasing?
Answers
Explanation:
due to spread of covid-19The GDP decline in the April-June quarter (Q1) is primarily due to the pandemic and does not relate to the economy's performance leading into the pandemic. ... The correct inference is that economic activity in April-June 2020 was 23.9 per cent lower than in April-June 2019.
Answer:
Here is your answer
First of all see the definition of GDP what it is
Gross Domestic Product, abbreviated as GDP, is the total value of goods and services produced in a country. GDP is measured over specific time frames, such as a quarter or a year. GDP as an economic indicator is used worldwide to show the economic health of a country.
On what GDP depends:-
- Natural Resources.
- Natural Resources.Physical Capital or Infrastructure.
- Natural Resources.Physical Capital or Infrastructure.Population or Labor.
- Natural Resources.Physical Capital or Infrastructure.Population or Labor.Human Capital.
- Natural Resources.Physical Capital or Infrastructure.Population or Labor.Human Capital. Technology.
- Natural Resources.Physical Capital or Infrastructure.Population or Labor.Human Capital. Technology.Law.
- Natural Resources.Physical Capital or Infrastructure.Population or Labor.Human Capital. Technology.Law. Poor Health & Low Levels of Education.
- Lack of Necessary Infrastructure.
Why it's decreasing:- When a country's real GDP is stable or increasing, companies can afford to hire more people and pay higher wages. As a result, spending power goes up as well. A country's real GDP can drop as a result of shifts in demand, increasing interest rates, government spending reductions and other factors.
So In one line if your asking regarding current situation the GDP is falling because of the Pandemic COVID-19 as the more works are not done but the demand was still there.
hope it's helpful