new Delhi. The US economy has seen a record decline in the second quarter due to the Corona crisis. According to the data released today, the US economy recorded a sharp decline of 32.9 percent during the April to June quarter. This is the fastest decline recorded in any quarter in the US economy since 1947. The special thing is that from 1947, the US government started collecting these data. This decline in the economy was due to the Corona virus, due to which there was a negative impact on the demand and business activities during the quarter.
Earlier, the biggest decline in the economy was seen in the second quarter of 1958, when GDP had fallen by 10 percent. In the first quarter of this year, GDP fell at the rate of 5 percent. However, the fall in April-June has been better than economists' estimates. In a survey conducted by Reuters, economists had predicted a 34 percent drop. According to reports, the biggest loss during the quarter was in the month of April when the economy saw almost no momentum. At the same time, due to new cases of corona, the activity started in May. And the economy is struggling for recovery.
After the fall in GDP and setback to recovery expectations, the government has come under pressure to announce another relief package soon. Economists believe the second quarter figures could have been worse without the previous relief package. In such a situation, between the rising case of corona virus and the impact on business activities, if the government does not announce the package soon, the problems will increase in the third quarter.
This post was published on July 30, 2020 9:44 pm
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