US Economy Suffers Significant GDP Decline in First Quarter, Unemployment Levels to Continue Soaring

The US Commerce Department has issued a grim statement regarding the current state of the economy as the coronavirus continues to wreak havoc across the country. In just the first quarter, GDP has been reduced by 4.8%, with even worse declines predicted for the second quarter, according to Federal Reserve Chairman Jerome Powell.

The US Labor Department is scheduled to provide an update on weekly unemployment claims, but a panel of economists surveyed by Reuters are predicting the numbers will be unpleasant. They are predicting that impending unemployment rates for the month of April will surpass the November 1982 record of 10.8%. In March alone, data showed an increase of 0.9% in the unemployment rate, making it the largest monthly change since 1975.

Moreover, according to Andrew Hollenhorst, who is an economist with Citigroup, April and May will most likely account for the largest peak in unemployment numbers, which should then taper off in June once gradual reopening of the economy commences. Nonetheless, this is the largest economic contraction the US has suffered since the financial crisis in 2008, with more than 1 million COVID-19 infections and excess of 61,000 deaths thus far.

Information for this briefing was found via New York Times, RT News, Reuters, Washington Post, and Fox News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

US Sheds Another 3.2M Jobs Last Week; More than 33M Over Last 7 Weeks

This morning the Department of Labor released the jobless claim data for week ended May...

Thursday, May 7, 2020, 09:04:12 AM

Global Debt Expected to Surpass $300 TRILLION and GDP Growth Slows

Thanks to the all-encompassing “Helicopter Money” that is Modern Monetary Theory, global debt has soared...

Sunday, September 19, 2021, 11:15:00 AM

US With Another 3.0M Jobless Claims; 36M Over Last 8 Weeks.

This morning the Department of Labor released initial jobless claims data for the week ended...

Thursday, May 14, 2020, 09:21:57 AM

Federal Government’s CERB Payments Have Led Increased Consumer Spending

It appears that the Canadian federal government’s stimulus spending has persevered the economy through the...

Friday, June 26, 2020, 05:03:00 PM

Why Gold Futures Are Not In Line With Spot Prices

It appears that even gold markets are not immune to the effects of a global...

Tuesday, March 24, 2020, 09:52:01 PM