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GDP Sees Record Contraction in Second Quarter
July 30, 2020
Everyone expected it to be bad; the only debate was over how bad. We now know. The U.S. economy contracted by 32.9% in the second quarter after shutting down to combat the spread of the coronavirus.
This marks the sharpest decline on record, surpassing the 2008 financial crisis and even the Great Depression.
One potential silver lining is that the contraction came in slightly below the 34.7% contraction that Dow Jones economists had anticipated.
As severe as the decline was, most economists agree that it will be very short, and a robust rebound for the third quarter is anticipated. Although ongoing concerns about the virus’s spread throughout the country have some analysts questioning how rapid the recovery will be.
