The economy of the United States gas officially entered a recession, ending a record 128-month period of expansion. The National Bureau of Economic Research, the body that determines recessions, bringing an end to the longest expansion in post-World War II history.
US Gross Domestic Product reportedly fell by 5% in the first quarter of 2020, per NBER. It’s likely to post the worst decline on record for the second quarter, potentially over 50%. The analysis became official on Monday. It comes at a time when the US is trying to recover from the ongoing coronavirus pandemic.
he NBER’s Business Cycle Dating Committee said:
“The committee recognizes that the pandemic and the public health response have resulted in a downturn with different characteristics and dynamics than prior recessions”
The committee also noted that this recession could well be short-lived. NPR reported the US added 2.5 million jobs in May, after losing over 22 million in the months March and April. Multiple forecasts indicate that economic output will start growing once more in the third quarter.
The World Bank forecast has projected the global GDP will contract by 5.2% this year. That figure will leave it with the deepest recession since World War II.
From the World Bank statement:
“While the ultimate outcome is still uncertain, the pandemic will result in contractions across the vast majority of emerging market and developing economies. It will also do lasting damage to labor productivity and potential output”
The projection comes as economies begin slowly reopening after many weeks of lockdowns in the wake of the COVID-19 pandemic. The World Bank also suggested that global coordination and cooperation will be required for recovery.
This article was written citing information and media from the AP and ABC News. For more sports, news and entertainment follow the Midwest Sports Network on Twitter @MWSNsports or like our page on Facebook.
