US GDP Dropped By A Record 32.9% Year-On-Year In Q2 2020
The US Gross Domestic Product (GDP) in the second quarter of 2020 declined by a record 32.9% year-on-year due to the new coronavirus pandemic, according to a statement by the US Bureau of Economic Analysis.
Experts expected the drop to be 34.7%. Experts note that even during the great depression (1929-1939), there was no such significant reduction in GDP for such a short period.
The worst quarter for this indicator during the global financial crisis was an 8.4% drop in GDP in the fourth quarter of 2008. The first quarter of 1958 was considered the worst in history when a 10% drop was recorded.
However, according to economists, the current drop differs from previous ones in that it was caused by the introduction of strict restrictive measures by the authorities to combat the spread of the new coronavirus. These actions also brought the country's unemployment rate to 14.7% for the first time since the great depression.
The non-governmental National Bureau of economic research previously reported that the current recession in the US began in February, a month before the pandemic was announced. US GDP for the first quarter fell by 5%.
An outbreak of a coronavirus infection was recorded in late 2019 in Central China and has spread to most countries. On March 11, the world health organization recognized it as a pandemic. All countries and territories were forced to take various emergency measures of a sanitary and epidemiological nature, which led to a deep international economic crisis. According to the IMF forecast, the global economy will experience a decline of almost 5% this year, but it will recover and grow by 5.4% next year.