US economy shrinks at 5% annual rate in Jan-Mar quarter; economists expect far worse GDP outcome in Q2
The US economy shrank at an even faster pace than initially estimated in the first three months of this year with economists continuing to expect a far worse outcome in the current April-June quarter
Washington: The US economy shrank at an even faster pace than initially estimated in the first three months of this year with economists continuing to expect a far worse outcome in the current April-June quarter.
The Commerce Department reported Thursday that the gross domestic product, the broadest measure of economic health, fell at an annual rate of 5% in the first quarter, a bigger decline than the 4.8 percent drop first estimated a month ago.
It was the biggest quarterly decline since an 8.4 percent fall in the fourth quarter of 2008 during the depths of the financial crisis.
The downward revision to the first-quarter GDP reflected weaker investment by businesses in their inventories which was partially offset by slightly stronger consumer spending.
Economists believe the lockdowns that shut wide swaths of the economy and triggered the layoffs of millions of workers will send the GDP sinking at an annual rate of 40 percent in the current quarter.
That would be the biggest quarterly decline on records that go back to 1947. It would be four times the size of the previous decline set back in 1958.
Many forecasters believe growth will rebound sharply in the July-September quarter with the Congressional Budget Office predicting GDP will rise at an annual rate of 21.5 percent. Still, that gain would not be nearly enough to make up for the economic output that was lost during the first and second quarters.
India logs 12,847 new COVID-19 cases, 14 deaths in last 24 hours; Maharashtra, Kerala, Delhi report maximum infections
The number of new COVID-19 cases is 5.19 per cent higher than 12,213 fresh infections logged on Thursday. It is for the second consecutive day that India has been reporting more than 12,000 new cases in a single day
The Ministry of Health and Family Welfare (MoHFW) informed that 11 people died of coronavirus in the last 24 hours, increasing total casualties to 5,24,803
It is time India stopped being beholden to how others see us and start telling others how we see them