US, WASHINGTON (ORDO NEWS) — The National Bureau of Economic Research (NBER) said Monday that the US economy, the largest in the world, is in a recession.
“The committee recognizes that the pandemic and public health responses have led to a downturn with characteristics and dynamics different from previous recessions,” the NBER business cycle dating committee said in a statement.
“Nevertheless, he concluded that the unprecedented scale of the decline in employment and production, as well as its wide coverage throughout the economy, justifies the designation of this episode as a recession, even if it turns out to be shorter than previous reductions,” the statement said.
The committee determined that “a clear peak in monthly economic activity” came in February. The peak of quarterly activity occurred in the IV quarter of 2019.
According to the US Department of Commerce, in the first quarter of 2020, GDP fell by 5% in annual terms. The decline in the second quarter is expected to intensify and become the worst in history.
Unemployment in the US in April jumped to 14.7% , which is the worst figure since World War II. In May, unemployment unexpectedly dropped to 13.3%.
The recession interrupted the longest growth period in US history, which, according to NBER estimates, lasted 128 months, or almost 11 years.
However, most economists believe that the recession will end in the second quarter, which will also put an end to the recession.
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