The U.S. Officially Entered a Recession in February
June 10, 2020
While it seemed like a foregone conclusion, the American economy officially entered a recession in February amid the coronavirus pandemic. The declaration comes from the National Bureau of Economic Research.
The declaration brings an official end to the 128 month long period of economic expansion that followed the 2007 financial crisis. The Bureau determined a “clear peak in monthly economic activity” occurring in February.
Though the technical definition of a recession generally requires two consecutive quarters of economic decline, the Bureau argues that the unprecedented downturn in employment and business activity warranted the designation.
GDP fell by 5% in the first quarter, and estimates for the second quarter forecast a decline of 50% or more.
While this current recession is one of the deepest in history, most economists feel it is likely to be one of the shortest.