The decline in the US economy in the second quarter was a record for all time

Analysts are not optimistic about a stable recovery in the US economy for the rest of the year.

After the US economy suffered a record decline in the second quarter of the year, analysts are not optimistic about its stable recovery for the rest of the year.

The huge decline in consumer activity, caused by the fact that most people stayed at home all this time, avoiding shopping and visiting restaurants and entertainment venues, led to the fact that the country’s GDP, in terms of the year, fell by 32% from April to June. According to the Associated Press, this is three times worse than the worst-ever quarterly drop in GDP, which was recorded in 1958 and was then about -10%.

Official government data in the second quarter of the year is expected on Thursday, July 30.

However, the overall fall in the second quarter was so large that in the next quarter of the year, economists expect a sharp jump in GDP back up: about + 17%. But it may be short-lived, as a new outbreak of coronavirus in the US has led to many companies shutting down again.

Analysts warn that the forecast for the end of the year may be even bleaker if Congress does not take care to provide the population with other financial assistance instead of temporary benefits of $ 600 per week, which expires on July 31.

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Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
Steve Cowan

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