The USA: Biggest slump in history
The US economy experienced a historic economic downturn in the Corona crisis. Gross domestic product collapses by a third in the second quarter.
Economic output in the United States slumped dramatically in the second quarter due to the coronavirus pandemic despite massive stimulus packages. From April through June inclusive, gross domestic product (GDP) contracted by 32.9 percent per year, as the US government announced in a first estimate. It was the deepest drop in a quarter of a year since records started. According to the quarterly comparison method used in Europe, this would be equivalent to a minus of almost ten percent. In the first quarter, the US economy had already shrunk by five percent annually.
In the second half of May and in June there were signs of a recovery
However, the worsening of the corona pandemic from mid-March plunged the United States into a severe economic crisis. In the second half of May and in June there were signs of a recovery. Since the end of June, however, the number of new infections has increased dramatically, which has led to further restrictions in economic life and should slow down growth again. The unemployment rate was 11.1 percent in June. Before the pandemic, it was 3.5 percent.
Central bank chief Jerome Powell had already warned on Wednesday of a historic slump in GDP. He said the further development of the world’s largest economy was highly uncertain due to the pandemic. “The course of the economy will depend to a very large extent on the course of the virus,” said Powell. Without curbing the virus, a full economic recovery is “unlikely,” he warned. US President Donald Trump’s government, on the other hand, hopes for a rapid recovery in the world’s largest economy in the third quarter. Trump is therefore pushing for a rapid normalization of economic life despite the pandemic. However, analysts are mostly more skeptical about the hope of a rapid upswing.
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