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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the response to CoViD-19, the instructions to stay at home, which were introduced in March and April, were partially withdrawn in several regions of the country in May and June.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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