The gross domestic product plummeted at an annual rate of 32.9% in the second quarter due to the crisis triggered by the Coronavirus pandemic. Read on to learn more about the latest report.
The Commerce Department unveiled the latest GDP report which shrank at an annual rate of 32,9% in the second quarter due to the impact of the Coronavirus pandemic on the US economy.
The gross domestic product during April, May and June was more than three times as sharp as the previous record (10% in 1958), and nearly four times the worst quarter during the Great Recession.
After the March and April lockdown, the economy showed a slight rebound in May and June as stores and small businesses started to reopen. However, a spike in Coronavirus cases led to backtracking in the recovery of economic activity.
Meanwhile, the Labor Department indicated that another 1.43 million people filed for unemployment benefits last week, which represents a 12,000 increase.
Nevertheless, the crisis was cushioned by the CARES Act and the stimulus package that granted an aid to weather the Coronavirus crisis. This federal relief included enhanced unemployment benefits, aid for small businesses, and a $1,200 stimulus check.
As the CARES Act is about to expire, Democrats and Republicans are currently debating a new stimulus check to help Americans face the second semester of the year.