The United States economy endured its worst quarter in recorded history this past spring, brought on by the ongoing coronavirus pandemic.
(CBSNewYork) — The United States economy endured its worst quarter in recorded history this spring. The real Gross Domestic Product (GDP) — the value of all the goods and services produced in an economy — declined at an annual rate of 32.9 percent. That’s according to the advance estimate from the Bureau of Economic Analysis. The decline reflects the effects of the COVID-19 pandemic that forced much of the country to stay home and limit spending. The previous record occurred in the first quarter of 1958, when the economy shrank by 10 percent. The coronavirus contraction this past spring far exceeds the first quarter of 2020, which included two months of normal economic activity, and any quarter during the Great Depression. Second quarter figures reflect consumer spending that resulted from the CARES Act. The $2 trillion-plus stimulus package included $1,200 stimulus payments to most individuals and an additional $600 in weekly benefits to the unemployed. While the latest figures are jarring, they were also entirely expected given the ongoing public health crisis. Consumer spending fell drastically as millions lost jobs, either temporarily or permanently.
