US gross domestic product likely contracted by 1.5% in the second quarter of 2022 after a first-quarter decline of 1.6%, the Atlanta Federal Reserve said Friday in deepening its call for a recession in the world's largest economy
WASHINGTON (Pakistan Point News / Sputnik - 15th July, 2022) US gross domestic product likely contracted by 1.5% in the second quarter of 2022 after a first-quarter decline of 1.6%, the Atlanta Federal Reserve said Friday in deepening its call for a recession in the world's largest economy.
"The GDPNow model estimate for real GDP growth in the second quarter of 2022 is -1.5 percent on July 15, down from -1.2 percent on July 8," the Atlanta Fed said in a statement.
In its first forecast for the second quarter on June 30, it forecast a 1.0% decline for the second quarter.
US GDP contracted by 3.5% in 2020 in the aftermath of the coronavirus pandemic. The following year, it posted a growth of 5.7%, its strongest in four decades, as the economy rebounded forcefully from business lockdowns and other restrictions imposed during the height of the pandemic.
Since the start of 2022, inflation expanding at its fastest pace in 40 years has negatively impacted GDP, pushing to a 1.6% decline in the first quarter.
Two straight quarters of GDP decline technically place any economy in a recession.
