News

U.S. Economy Shrinks By 33% – Worst Annual Rate Drop In History Amid COVID-19 Pandemic

The U.S. economy shrank at a 33% annual rate from April through June, the largest quarterly decline in history as the unemployment rate continues to rise.

The economy recorded a record-high decline from April to June quarter, amid the coronavirus pandemic crisis. The drop becomes sharpest on record since 1947, when the 10% decline in 1958 was the second largest.

Unemployment filings also increased last week to 1.4 million, with more than 54 million first-time unemployment claims since mid-March. The country has seen a loss of nearly 20 million jobs in April, as the coronavirus pandemic pushed many businesses to close.

Federal Reserve Chair Jerome Powell said on Wednesday that the recent increase in coronavirus cases will further affect the economy.

Subscribe to our free weekly newsletter!

A week of political news in your in-box.
We find the news you need to know, so you don't have to.

President Donald Trump, however, expressed hopes for the V-shape economic increase in the third quarter.

“We’re going to have a great year next year. We’re going to have a great third quarter,” Trump recently told Fox News. “And the nice thing about the third quarter is that the results are going to come out before the election.”

Few experts agree with Trump. “To me it seems like a pipe dream. I cannot image a V-shaped recovery in the offing any time soon,” Beth Ann Bovino, chief U.S. economist at Standard & Poor’s Ratings Services told Politico. “Aside from the fact that COVID-19 doesn’t seem to be under control, this is a $22 trillion economy. You can’t turn it off and on like a light bulb.”

Polina Kuznetsova

Recent Posts

VIDEO: Trump Watches SpaceX Launch Alongside Elon Musk & Ted Cruz

https://youtube.com/shorts/YVrfbMZSVRE?feature=share US President-elect Donald Trump drew cheers as he arrived in Texas on Nov. 19 to watch…

2 days ago

Foreign Policy Experts Voice Concern About Trump’s Nomination Of Tulsi Gabbard For Director Of National Intelligence

After President-elect Donald Trump selected Tulsi Gabbard, a former Democratic congresswoman, as his nominee for…

3 days ago

Trump’s Pick Of Vaccine-Skeptic Robert F. Kennedy Jr. As Department of Health & Human Services Secretary Alarms Scientific Community

President-elect Donald Trump's announcement that Robert F. Kennedy Jr. will be his pick for Department…

4 days ago

VIDEO: President-Elect Donald Trump, Elon Musk & Cabinet Picks Attend UFC Fight In NYC, Crowd Chants “USA”

https://youtube.com/shorts/6CUvTmS87UM?feature=share President-elect Donald Trump arrived to cheers at an Ultimate Fighting Championship (UFC) event in…

4 days ago

Trump Pick Of Matt Gaetz For Attorney General Sends Shock Waves Through Capitol

President-elect Donald Trump's nomination of former Rep. Matt Gaetz (R-Florida) as his attorney general has sent shockwaves through…

5 days ago

VIDEO: Fights Break Out In Stand During France-Israel Match

https://youtube.com/shorts/TD8RNJl-NBk A fight broke out in one of the stands at the Stade de France…

5 days ago