The U.S. economy saw a 5% decrease in the first quarter of the year, which included just 2 weeks of shutdowns due to coronavirus.
Experts are predicting a 30% GDP decline in the current quarter, which would be 3 times larger than the biggest GDP drop of 10% in the first quarter of 1958.
The good news: experts predict a rebound in the second half of the year. However, if a serious second wave of coronavirus presents itself, that could also change drastically.
“Mark Zandi, chief economist at Moody’s Analytics, said for the country to avoid a double-dip recession, an effective vaccine needs to be available next year and new waves of coronavirus cases will need to do less damage than the first wave. Congress needs to soon pass another package of at least $1 trillion in further support for laid-off workers and struggling businesses, Zandi said.”