US GDP fell at 5.0% rate in Q1; worse is likely on the way

By: |
June 25, 2020 6:56 PM

The Commerce Department reported Thursday that the decline in the gross domestic product, the total output of goods and services, in the January-March quarter was unchanged from the estimate made a month ago.

That was the sharpest quarterly decline since an 8.4 per cent fall in the fourth quarter of 2008 during the depths of the financial crisis.That was the sharpest quarterly decline since an 8.4 per cent fall in the fourth quarter of 2008 during the depths of the financial crisis.

The US economy shrank at a 5.0 per cent rate in the first quarter with a much worse decline expected in the current three-month economic period because of the coronavirus pandemic.

The Commerce Department reported Thursday that the decline in the gross domestic product, the total output of goods and services, in the January-March quarter was unchanged from the estimate made a month ago.

That was the sharpest quarterly decline since an 8.4 per cent fall in the fourth quarter of 2008 during the depths of the financial crisis.
The first quarter decline reflected just two weeks of the shutdowns that began in many parts of the country in mid-March.

Economists are forecasting a much bigger GDP drop of around 30% for the current April-June period.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Cabinet nod to Rs 6,000-cr NIIF infusion; To enable Rs 1-lakh-crore debt finance for infra projects
2Economic emergency just begun, warns Rishi Sunak with Spending Review
3UP export policy aims doubling farmer income, boosting agri-product shipments