US GDP Decline in Q2 Likely 'Most Severe' Ever
Tuesday, 06 16 2020, Category: Economy, Country: United States
The contraction in US real Gross Domestic Product (GDP) in the second quarter is expected to be the worst in history as the novel coronavirus pandemic measures continue to take a toll on the world's largest economy, Federal Reserve Chairman Jay Powell said on Wednesday.
"The virus and the forceful measures taken to control its spread have induced a sharp decline in economic activity," Powell told a news conference. "The decline in real GDP in the current quarter is likely to be the most severe on record."
The US economy shrank 5 percent in the first three months of 2020, its worst for a quarter since the 2008 financial crisis. Some economists expect a double-digit contraction for the second quarter through June that when combined with the first quarter, would technically result in the deepest recession in US history.