Singapore (29 April 2020) – The US Gross Domestic Product shrank at an annual rate of 4.8% in the first quarter of 2020, according to advance estimate released by the Bureau of Economic Analysis. In 4Q2019, real GDP increased 2.1%.
According to the US Commerce Department, the 1Q GDP ended the country’s 10-year economic growth. Q2 GDP is expected to be “far worse,” with analysts expecting it to fall back to levels seen in the 1940s. Some 26 million Americans have filed for unemployment benefits.
The GDP estimate released today by BEA is based on incomplete source data and is subject to further revision. The second estimate will be released on 28 May 2020.
The decline in the 1Q GDP was in part due to the response of the COVID-19 as governments issued “stay-at-home” orders in March. This led to rapid changes in demand, as businesses and schools switched to remote work or cancelled operations and consumers redirected their spending. -/- www.halaluniverse.net
