US Economy Shrank 4.8 Percent in First Quarter

US Economy Shrank 4.8 Percent in First Quarter

The coronavirus exerted its effect in the USA. In the first quarter of 2020, the US economy contracted 4.8 percent with the impact of the epidemic.

The epidemic that swept the world continues to affect all sectors with incredible numbers. The US economy continued its growth for a long time and ended in the first quarter of 2020. According to data released by the Ministry of Commerce today, GDP contracted by 4.8 percent in the first quarter of 2020 due to the negative impact of the coronavirus outbreak. The economy has thus shrunk for the first time since 2014. A contraction similar to this has been seen before that year, and a contraction of 8.4 percent occurred in 2008. Personal spending fell by 7.6 percent year on year to 3.6 percent in the first quarter, with stores and restaurants closing in the country. This was the biggest drop since 1980. In order to prevent the spread of the epidemic, stopping the operations of the enterprises was effective in the economic contraction. A record contraction is expected in the second quarter of the year.