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The GDP analysis generates discussions around several economic segments, and understanding the historical factors can contribute to dealing with problems that arise in financial crises. Economic growth depends on trade relations -internal and external- in different economic sectors. The COVID-19
pandemic
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affects several economic sectors worldwide; trade expects to fall even more steeply,
consequently
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impacting GDP and
unemployment
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.
Therefore
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, governments need to act to mitigate negative consequences. The GDP growth trend is related to periods of expansion and economic recession; historically, in periods of economic development, we have low
unemployment
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rates than periods of recession. There is an inversely proportional relationship between GDP and the
unemployment
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rate. According to Okun's Law, a one
percent
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per cent

The spelling of percent is a non-British variant. For consistency, consider replacing it with the British English spelling.

show examples
increase in the
unemployment
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rate generates a two
percent
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per cent

The spelling of percent is a non-British variant. For consistency, consider replacing it with the British English spelling.

show examples
drop in GDP. We can see
this
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strong correlation in the current scenario of the COVID-19
pandemic
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, with the
unemployment
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caused by COVID-19, currently, at 16%, GDP is forecast to fall by 27.6% or more in the United States (USA Today, 2020). GDP
also
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reduces when there is a reduction in product demand. With the increase in
unemployment
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caused by economic crises, the need for products falls and,
consequently
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, producers have less
income
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. In Canada, with the consequences of the COVID-19
pandemic
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, the forecast is a drop by 12-32% in the agriculture business, which might strongly impact producers' revenues due to falling prices. These revenue impacts will contribute to the reduction in GDP (Barichello, 2020).
For instance
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, it is necessary to find a solution to maintain consumption and,
consequently
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, the producers'
income
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. Dealing with the economic problems generated in a crisis requires knowing the source of the issues. In an
unemployment
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scenario, it is crucial to stimulate the population's demand and to maintain production.
Consequently
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, the effect on the drop in GDP and on the
unemployment
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rate may be lower. Canada adopted
income
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support programs to mitigate the
pandemic
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's impacts; disposable
income
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increased by 11% in the
second
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quarter of 2020, reflecting an economic recovery almost twice that of the United States. (Reuters, 2020). To conclude,
although
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the GDP analysis is thorough and involves several related concepts, understanding historical factors and their relationships is fundamental to building effective solutions to deal with future economic crises.

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Fully explain your ideas

To get an excellent score in the IELTS Task 2 writing section, one of the easiest and most effective tips is structuring your writing in the most solid format. A great argument essay structure may be divided to four paragraphs, in which comprises of four sentences (excluding the conclusion paragraph, which comprises of three sentences).

For we to consider an essay structure a great one, it should be looking like this:

  • Paragraph 1 - Introduction
    • Sentence 1 - Background statement
    • Sentence 2 - Detailed background statement
    • Sentence 3 - Thesis
    • Sentence 4 - Outline sentence
  • Paragraph 2 - First supporting paragraph
    • Sentence 1 - Topic sentence
    • Sentence 2 - Example
    • Sentence 3 - Discussion
    • Sentence 4 - Conclusion
  • Paragraph 3 - Second supporting paragraph
    • Sentence 1 - Topic sentence
    • Sentence 2 - Example
    • Sentence 3 - Discussion
    • Sentence 4 - Conclusion
  • Paragraph 4 - Conclusion
    • Sentence 1 - Summary
    • Sentence 2 - Restatement of thesis
    • Sentence 3 - Prediction or recommendation

Our recommended essay structure above comprises of fifteen (15) sentences, which will make your essay approximately 250 to 275 words.

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