US GDP fell at 5% rate in Q1, the worse likely on the way

Iran Daily - - Global Economy -

The US econ­omy shrank at a 5.0 per­cent 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 that the de­cline in the gross do­mes­tic prod­uct, the to­tal out­put of goods and ser­vices, in the Jan­uarymarch quar­ter was un­changed from the es­ti­mate made a month ago, AP re­ported.

That was the sharpest quar­terly de­cline since an 8.4 per­cent 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 per­cent for the cur­rent April-june pe­riod.

RE­BECCA COOK/REUTERS A Dana assem­bly tech­ni­cian wears a face mask as he as­sem­bles axles for au­tomak­ers, as the auto in­dus­try be­gins re­open­ing amid the coro­n­avirus dis­ease (COVID-19) out­break, at the Dana plant in Toledo, Ohio.

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