The US economy shrank 5 percent in the first three months of this year, the Bureau of Economic Analysis (BEA) said on Thursday, revising upward the 4.8 percent economic decline initially estimated for the first quarter due to coronavirus lockdowns
WASHINGTON (Pakistan Point News / Sputnik - 28th May, 2020) The US economy shrank 5 percent in the first three months of this year, the Bureau of Economic Analysis (BEA) said on Thursday, revising upward the 4.8 percent economic decline initially estimated for the first quarter due to coronavirus lockdowns.
"Real gross domestic product (GDP) decreased at an annual rate of 5.0 percent in the first quarter of 2020," the BEA said in a statement. "The GDP estimate released today is based on more complete source data than were available for the 'advance' estimate issued last month. In the advance estimate, the decrease in real GDP was 4.8 percent."
Historical data showed it was the quarterly GDP decline since the Great Recession of 2008/09. In the fourth quarter of last year, real GDP increased by 2.1 percent, the BEA said.
The latest GDP data comes on the back of weekly jobless claims numbers from the Labor Department showing that 2.1 million more Americans filed for first-time unemployment insurance last week, bringing the number of people who had lost their jobs due to COVID-19 to around 41 million.
Despite all 50 states in America having reopened most of their economy from the coronavirus lockdowns, economists still warn of a double-digit GDP contraction in the current second quarter, setting the nation up for a sharp recession.
