Data presented by Buy Shares indicates that the United States’ real GDP slumped by 32.9% during Q2 2020. The drop was the worst in about seventy-three years.
Pandemic leads to negative GDP growth
Over the last 70 years, notable slumps were recorded at the end of Q1 1958 when the real GDP declined by 10%. During Q2 of 1980, there was also a major drop of 8%. In the wake of the recession at the end of Q4 2008, the real GDP declined by 8.4%.
The massive decline in the US real GDP was due to the economic impact of the coronavirus pandemic. According to the Buy Shares report:
“The decline in the US real GDP is a clear indicator of how the coronavirus pandemic has taken a toll on the country’s economy which has been growing steadily in the last five years. The drop means that consumers had to cut spending with businesses freezing investment while at the same time the global trade activity has slowed down. The pandemic led to widespread joblessness, with many businesses closing down. The pandemic affected different key sectors like triggering a collapse in oil prices with most Americans staying at home while avoiding commuting. “
The Buy Shares research also overviewed the real US GDP figures over the last decade where the highest figure was recorded in 2019 at $19.09 trillion. By Q1 2020, the GDP dropped to but $19.01 trillion.
By Q2 2020, the real GDP dropped by 9.5% to about $17.2 trillion. Over the last ten years, the lowest GDP was recorded in 2010 at $15.59 trillion.