Question
Please read the following article and answer the question: U.S. Coronavirus Recession Lasted Two Months, Ended in April 2020, Official Arbiter Says: The U.S. officially
Please read the following article and answer the question:
U.S. Coronavirus Recession Lasted Two Months,
Ended in April 2020, Official Arbiter Says:
The U.S. officially climbed out of a recession in
April 2020, concluding a pandemic-driven
economic contraction that lasted two months,
making it the shortest on record.
The announcement Monday from the National
Bureau of Economic Research also marks April
as the official start of the economic recovery
from the initial shock of the coronavirus
pandemic last spring, which triggered
widespread business and school closures, a
steep drop in demand for services and record job losses. The recession ended the country's longest recorded economic expansion, which began in June 2009 and lasted 128 months, according to the bureau's Business Cycle Dating Committee, the accepted arbiter of recession dates in the U.S. Last year, the economy shrank at a 5% annual rate in the first quarter of 2020 and at a 31.4% pace in the second quarter, adjusted for inflation, the Commerce Department estimated.
Then, output and jobs rebounded strongly in the
second half of the year, with gross domestic
product rising at a 33.4% annual rate in the third
quarter and 4% pace in the fourth quarter.
Measured year-over-year, the economy
contracted 3.5% in 2020, the largest decline
since just after World War II, the Commerce
Department reported. Measured from the fourth
quarter of 2019 to the same quarter of 2020, the
economy shrank 2.5%.
Fueled by Covid-19 vaccinations, economic reopenings and fiscal stimulus, the economy
grew at a 6.4% seasonally adjusted annual rate
in the first quarter of this year. Economists
estimate it grew at an even faster rate in the
second quarter-9.1% according to a Wall Street
Journal survey. Economists also think growth
peaked in the spring, but that a strong expansion is expected to continue into next year. Second-quarter GDP figures are set to be released by the Commerce Department on Thursday July 29. While past recessions have affected the economy more uniformly, the most recent downturn and recovery can be characterized by its uneven outcomes, said Diane Swonk, chief economist at accounting and advisory firm Grant Thornton. While some industries quickly bounced back to pre-pandemic levels of activity and employment, others are still adjusting to an economic shift that hit demand for services, particularly in areas such as travel, entertainment, bars and restaurants. Households increased spending on such services in May, helping position the economic recovery for a strong summer.
"It's such a unique recession, it's difficult to put
it into the traditional boxes of what we think of:
recovery, a trough in economic activity, and then
a rebound," said Ms. Swonk, speaking before the NBER's announcement.
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