How Has the COVID-19 Pandemic Affected GDP Growth?-Empirical Study on USA and China-

Abstract

This paper anticipates trends in the digital economy during a COVID-19 epidemic worldwide. The United States and China are considered the world’s largest economies and have attempted to transition to fully digital economies over the last few years. Therefore, this paper used the auto-regressive integrated moving average (ARIMA) model and the gross domestic product (GDP) for the USA and China over the period 1960-2019. As we arrive at the peak of the COVID-19 pandemic, one of the most squeezing questions confronting us is: How has the COVID-19 crisis affected the USA and China’s GDP growth? The results have shown first that the GDP growth for both years 2020 and 2021 are approximately 6% and 10% for the USA and China, respectively. Second, the COVID-19 pandemic cannot influence the countries that depend on technology and the digital economy. It can be seen that technology is playing a very significant role in our daily life and nations’ economies.