Economtermin.ru - Economic terms, news of the economy, the banks of the world
    Main   Economic Terms    Business News    Banks    Company    Real Estate    IT-business    Show Business    Wealth   ru 
Economic Terms
Calendar
«    Август 2022    »
ПнВтСрЧтПтСбВс
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
 

US GDP in the second quarter of 2020 for the first time in history fell by a third
Section:   en » Business News      13 октября 2020  
US GDP in the second quarter of 2020 for the first time in history fell by a third
 
In the second quarter of 2020, U.S. GDP contracted 32.9% year-over-year. Such data are provided by the Bureau of Economic Analysis of the Ministry of Commerce. The contraction of the world's largest economy was recorded for the first time in the history of statistical quarterly observation, which has been conducted since 1947.

The previous record for the quarterly decline in US GDP was recorded in the first quarter of 1958 - GDP fell by 10%. The record for the annual contraction of the US economy was recorded in 1932 - by 12.9%.

For comparison: Germany's GDP, the largest in Europe, in the second quarter of 2020 also declined for the first time in its history of observations - by 11.7% in annual terms. According to Bloomberg estimates, Russia's GDP will decline by 16% in the second quarter.

The country will spend at least 10 years trying to recover from the deepest recession in American history, the US Congressional Budget Office predicts. US GDP fell 2.15 trillion in the second quarter to $ 19.41 trillion. In the first quarter, GDP contracted by $ 186.3 billion.

The dollar against the euro accelerated its decline after the publication of GDP data - ahead of a repeat of the recent decline to the 2018 low. In general, the depreciation of the dollar for the month was a record over the past 10 years: the dollar in July fell by 5% against the euro, by 2.7% against the yen and by 7% against the basket of currencies of developed countries.

Fed Uncertainty

The Federal Reserve System (FRS) of the United States on July 29, on the eve of the publication of data on GDP, kept the low interest rate at 0-0.25% per annum for the third time after its decline in the spring of 2020 at the peak of the pandemic.

US President Donald Trump said that disagreements with Democrats and Republicans in Congress remained on the size of a new portion of state aid for $ 1 trillion. As a result, the dollar remains under pressure, as the Fed did not rule out further easing of monetary policy and warned of economic shocks due to the wave of new cases of coronavirus. The United States maintains a policy of low rates to recover from the previous crisis of 2008-2009. From December 2008 to June 2011, the Fed bought $ 2.3 trillion in government debt, maintaining low rates and increasing investment in the economy.

"Concerns about the rise in new cases of the virus and their impact on the labor market and economic activity will be further exacerbated if Congress cannot reach agreement," said Shima Sha of Principal Global Investors.

Federal Reserve Chairman Jerome Powell acknowledged the slowdown. The US central bank kept interest rates near zero and promised to keep pumping money into the economy. Consumer spending, the main engine of the economy, contracted a record 34.6% year on year in the US in the spring. For the first time, investments in equipment and housing decreased at a huge rate - by 35-39%.

“The outlook is not very good. Americans are misbehaving in terms of social distancing, infection rates are unacceptably high, which means that economic growth cannot pick up steam,” said Song Won Song, professor of finance and economics at Loyola Marymount University in Los Angeles.
 
See also:

  • Gold has reached a record price in history - more than $ 2000
  • Shipbuilding companies in the world have received record losses
  • American Express recorded a net profit growth of 6.5%
  • Bank of America has reduced the profit by 13%
  • Citigroup cut its earnings and revenue in the I quarter of 2016


  • Banks

    International Monetary Fund

    Wall Street

    Bank of America

    JP Morgan Chase

    Wells Fargo

    Citigroup

    Goldman Sachs

    Morgan Stanley

    HSBC

    Barclays

    BNP Paribas

    Credit Agricole

    UBS

    Credit Suisse

    Royal Bank of Scotland (RBS)

    Deutsche Bank

    Sberbank of Russia

    PrivatBank

    Main   Economic Terms    Business News    Banks    Company    Real Estate    IT-business    Show Business    Wealth    Contact


    Economic Terms
       Copyright 2013 © economtermin.ru