Due to the coronavirus pandemic, a number of economic indicators in the United States showed a record decline.
In the second quarter of 2020, the US economy fell by a record 32.9% due to the new coronavirus pandemic, according to the US Department of Commerce.
At the same time, GDP fell by 5% in the first quarter.
Thus, consumer spending, which accounts for two-thirds of US GDP, fell by 34.6% in annual terms in April-June. This was also a record decline. The service sector (travel and tourism costs, medical care, and food outside the home) was particularly affected, with a 43.5% drop.
In addition, purchases of goods decreased by 11.3% due to reduced demand, including clothing and gasoline.
The company's investment in equipment in the second quarter fell by the highest ever at 37.7%. Purchases of new buildings fell by 38.7%.
Exports fell by 64% and imports by 53%.
At the same time, government spending increased slightly вЂ” by 2.7%.
Experts polled by the Wall Street Journal expected the drop to be 34.7%. Experts note that even during the great depression (1929-1939), there was no such significant reduction in GDP for such a short period.
The worst quarter for this indicator during the global financial crisis was an 8.4% drop in GDP in the fourth quarter of 2008. The first quarter of 1958 was considered the worst in history when a 10% drop was recorded.
However, experts believe that the US economy began to recover in the third quarter and GDP growth may reach 18%.