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Jul 31, 2020
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The US recorded a record drop in GDP

The gross domestic product (GDP) of the United States in the second quarter of 2020 fell by a record 32.9% year on year due to the coronavirus pandemic. This was reported in an official statement by the US Department of Commerce.

The decline in GDP in the second quarter reflects the response to CoViD-19, the instructions to stay at home, which were introduced in March and April, were partially withdrawn in several regions of the country in May and June. – the ministry said in a statement.

According to analysts, the fall will be 34.7%. Such a collapse of the economy and for such a short period in the United States was not recorded even during the Great Depression (1929-1939). The strongest annual decline in GDP was observed there in 1932 – by 12.9%.

Earlier, experts warned that US GDP would shrink by almost 40% due to the coronavirus pandemic. According to their forecast, the unemployment rate in the country in the second quarter will reach 14% and will peak at 16% in the third quarter.

Article Categories:
Economy
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