Economy shrinks 4.8% in Q1 as result of Coronavirus

From Transport Topics.

The U.S. economy contracted by 4.8% on an annualized rate in the first quarter, according to the U.S. Commerce Department, which released the gross domestic product figures April 29.

According to the Bureau of Economic Analysis, “The decline in the first-quarter GDP was, in part, due to the response to the spread of COVID-19 as governments issued stay-at-home orders in March. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations and consumers canceled, restricted or redirected their spending.”

The drop is the sharpest since the GDP plunged 8.4% in the fourth quarter of 2008 during the peak of the financial crisis.

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