The US economy contracted by 4.8 percent on an annual basis in the first quarter of 2020, after a record expansion period of 11 years. Thus, the first effect of the corona virus outbreak on economic growth was seen.
Bloomberg pointed out that the deepest crisis of the last 80 years is coming.
The contraction of 4.8 percent in the world’s largest economy was the toughest contraction after the financial crisis that started in 2008.
Due to the epidemic, 26 million people were left unemployed in the USA in five weeks while many businesses and factories were closing or working at low capacity.
The USA is the country most affected by the epidemic, with more than 1 million cases and more than 58 thousand deaths.
ASIL SHRINK IN THE SECOND QUARTER
The main effect of the outbreak in the US economy is expected to be seen in the second quarter. Bloomberg Economics foresees a shrinkage of 37 percent and Unicredit 65 percent.
