Economy Shrinks at Record 32.9% Pace Due to Pandemic

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The U.S. economy contracted at its steepest pace since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus.

Gross domestic product collapsed at a 32.9% annualized rate last quarter, the deepest decline in output since the government started keeping records in 1947, the Commerce Department said on Thursday. The drop in GDP was more than triple the previous all-time decline of 10% in the second quarter of 1958. The economy contracted at a 5.0% pace in the first quarter.

Economists polled by Reuters had forecast GDP plunging at a 34.1% rate in the April-June quarter.

The bulk of the historic tumble in GDP occurred in April when activity almost ground to an abrupt halt after restaurants, bars and factories among others were shuttered in mid-March to slow the spread of the coronavirus.

Read more at NEWSMAX

{Matzav.com}

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