US GDP collapsed in the I quarter of 4.8%

US, WASHINGTON (ORDO NEWS) — US GDP collapsed in the I quarter by 4.8% in annual terms, noted in a preliminary report by the US Department of Commerce. The last time the country’s GDP was reduced in January-March 2014 – by 1.1%. In the IV quarter of 2019, the indicator increased by 2.1%.

The American economy was negatively affected by the coronavirus pandemic and social exclusion measures.

The key component of US GDP – consumer spending – fell in the first quarter by 7.6%, while investments declined for the fourth quarter in a row, this time by 5.6%.

Exports decreased in January-March by 9%, imports – by 15%. The trade deficit increased in March by 7.2% to $ 64.2 billion.

In March-February, 26 million Americans filed applications for unemployment benefits. The Congressional Budget Office notes that the unemployment rate will rise to 14% in the II quarter, to 16% in the III quarter, but decline to 10.1% by the end of the year.

The statistics on GDP presented by the US Department of Commerce are preliminary; revised data will be released on May 28 and June 25.

Meanwhile, US GDP will fall in the II quarter by 33.5% in annual terms, predicts Credit Suisse. In turn, Bank of America predicts a decrease in US GDP for three consecutive quarters, including 30% in the second quarter.

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