The US Economy Shrinks by a Third: The Biggest Contraction of All – Corporations

This is the biggest economic slowdown since measurements began in 1947. Economists polled by Reuters had forecast an average drop of 34.1 percent for the second quarter compared to the previous year.

The sharp downturn in the second quarter on an annualized basis Three times deeper than the previous record low in the second quarter of 1958, when the gross domestic product of the United States fell by 10 percent. Compared to the first quarter of this year, the US economy contracted by 9.5 percent.

The three main aspects that reflect the pandemic’s impact on the US economy are a sharp drop in consumer spending among millions of newly unemployed people, an increase in government spending as a result of the CARES Act – a massive $ 2 trillion ($ 1,850 billion) aid package – and the cancellation or deferral of investments. Commercial because of uncertainty about the future.

To be clear, consumer spending, which accounts for two-thirds of the US economy, fell 34.6 percent in the last quarter.

The US is now experiencing an official recession after the second consecutive quarter. In the first three months of the year, GDP fell by 5 percent.

This is the biggest economic slowdown since measurements began in 1947. Economists polled by Reuters had forecast an average drop of 34.1 percent for the second quarter compared to the previous year. The sharp year-on-year contraction in the second quarter was three times deeper than the previous record low in the second quarter of 1958, when the gross domestic product of the United States fell by 10 percent. Compared to the first quarter of this year, the US economy contracted by 9.5 percent. The three main aspects that reflect the pandemic’s impact on the US economy are a sharp drop in consumer spending among millions of newly unemployed, higher government spending such as As as a result of the CARES Act – a sizeable $ 2 trillion (€ 1,850 billion) aid package – and canceled or delayed business investment. Because of uncertainty about the future. To illustrate: Consumer spending, which accounts for two-thirds of the United States, the economy fell by 34.6 percent in the past quarter, and the United States is now officially in recession, after the second consecutive quarter of the year. In the first three months of the year, GDP fell by 5 percent.