Experts believe that the U.S. economy is in for an even deeper recession in the second quarter
Until the current decline in the world’s largest economy grew for 11 consecutive years on average by 2% per year.
The gross domestic product of the United States in the first quarter decreased by 5% compared to the same period of 2019. About it reported the Ministry of Commerce.
Consumer spending, which accounts for 70% of US GDP, declined by 6.8%, company investments in fixed capital — by 6.4%.
While government expenditure increased by 1.1%, the cost of housing construction by 18.2%. The volume of exports fell by 9%, import — by 15.7%. The profits of U.S. companies after tax decreased by 9.1%.
The fall in GDP recorded for the first time since January-March of 2014 when the decline was 1.1%. It is also the most significant from the fourth quarter of 2008 due to the rigid and restrictive measures imposed by authorities to curb the spread of COVID-19.