According to the effects of the coronavirus pandemic, US GDP showed a historic decline of 32.9% between April and June 2020, according to a preliminary estimate by the Department of Commerce released on Thursday.
US Gross Domestic Product (GDP) fell by 32.9% at an annual rate in the second quarter under the effects of the Covid-19 pandemic, according to an initial estimate published Thursday, July 30 by the Department of Commerce.
This contraction is the largest record since 1947, when these statistics were introduced by the government.
An economy almost stops in April, returns fell in May
Economists expected an average decline of 34.1% after a 5% decline in GDP in the first quarter.
Most of the contractions during the second quarter were realized in April, when the economy came to a standstill due to the closure of companies and factories to combat the spread of coronavirus.
In addition, the recovery in activity from May was dampened by rising pollution, especially in the southern and western states. This slowed down the repeal of containment measures and threatens to weigh on growth during the third quarter.
The measure used in the US to estimate growth is an annual change, which compares GDP with the previous quarter, and projects a year-round change at that rate. This differs from the change from year to year, which compares GDP with the same quarter last year.
With AFP and Reuters