US GDP Ranked 1st, 5th Globally in Economic Power
Significant Expansion of Indoor Activity Restrictions Including Bar Closures
LA Confirms Online Restart of Fall Semester Classes
US Stock Market Reverses from Rise to Sharp Decline
[Asia Economy New York=Correspondent Baek Jong-min] California, the most populous state in the United States, has halted the reopening of economic activities due to the resurgence of the novel coronavirus infection (COVID-19). California's gross domestic product (GDP) ranks first in the U.S. and is among the top five globally compared to countries, raising concerns about the economic impact.
On the 12th, citizens are enjoying swimming at Santa Monica Beach in California. [Image source=AP Yonhap News]
According to U.S. media including The Wall Street Journal (WSJ), on the 13th (local time), California Governor Gavin Newsom issued an executive order to suspend dine-in services at all restaurants across all counties in the state, allowing only delivery and takeout operations. All bars in the state are prohibited from operating, and indoor operations at wineries, theaters, amusement parks, and museums have been suspended. In counties that have been under COVID-19 observation for three consecutive days, indoor activities at fitness centers, religious facilities, personal care services, non-essential offices, and shopping malls are also banned.
Separately, the Los Angeles and San Diego Unified School Districts in California announced on the same day that classes for the upcoming fall semester will be conducted online. In a statement, the two districts said, "School sites are not petri dishes for spreading the novel coronavirus (COVID-19)," criticizing the U.S. government's policy to push for in-person classes in the fall semester. The Los Angeles Unified School District is the second largest in the U.S., following the New York City school district. Consequently, the Trump administration's plan to reopen schools in the fall has inevitably been impacted. The Trump administration has regarded the resumption of in-person classes as an essential element for reopening economic activities.
The number of COVID-19 cases in California has reached 326,000. It is the second highest in the U.S. after New York, but considering the recent surge in infections, it is highly likely to surpass New York and become the state with the highest number of infections. According to data compiled by Johns Hopkins University, the total number of infections in the U.S. has reached 3,353,348, and the spread of infections shows no signs of stopping.
The suspension of economic activities in California also shook the U.S. stock market. The Nasdaq index, centered on information technology companies based in California, had been hitting record highs but plunged sharply immediately after Governor Newsom's announcement, closing at 10,390.84, down 2.13% from the previous day. The S&P 500 index, representing the U.S. stock market, also fell by 0.94%. Tesla, an electric vehicle company that had clashed with California over whether to resume factory operations, surged as much as 14% during the day but ended trading down 3.08%. The Wall Street Journal reported that California's decision heightened concerns about the unstable economic situation.
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