USA GDP Second Quarter Worst For 145 Years

31st July 2020

The Commerce Department of the United States opened today's announcement of second-quarter economic growth with a frightening statement: "Real gross domestic product (GDP) decreased at an annual rate of 32.9 percent in the second quarter of 2020."

32.9 percent represents the loss of a third of the economy.

Take out the annualization, and the economy contracted 9.5 percent.

The old phrase that comes to mind is "When America sneezes Britain Catches a cold". That may now apply to half the world. The other half may depend now on what happens to the economy in China. If we already have a cold let's hope he cure does not take long to find.

Read Today's (31 July 2020) Release from the Bureau of Economic Analysis part of the US Department of commerce HERE

For a scary analysis by economic reporter Andrew Van Dam in the Washington Post see HERE

NOTE

What is GDP?

Gross domestic product or GDP is a measure of the size and health of a country's economy over a period of time (usually one quarter or one year). It is also used to compare the size of different economies at a different point in time.