The US economy entered a recession after the longest growth period in history in February, Reuter reports, referring to a research group on private economy. Its experts concluded that “the unprecedented scale of the decline in employment and production, as well as its widespread coverage throughout the economy, give reason to call this episode a recession.” Experts are confident that the recession will begin even though it will be shorter than previous economic downturns.
It is specified that the committee for determining the dates of the beginning and end of the economic cycle of the National Bureau of Economic Research never rush to announce the beginning of the recession, for example, in the crisis of 2007, the organization announced a decline a year later, in 2008.
It is clarified that the committee, before announcing the start of the recession, takes into account many factors, namely “its duration, as well as how much economic activity as a whole has decreased”. At present, the committee is ready to admit that “the pandemic and the response … led to a recession that was different in its characteristics and dynamics from previous recessions,” the agency reports.
It was previously reported that in the first three months of the year, US gross domestic product fell 4.8%. Experts expect that from April to June this year, indicators will fall even further to 20% or more year on year. The unemployment rate in the country is also breaking records: from 3.5% in February to 14.7% in April and 13.3% in May.