Record plunge for eurozone economy

US Economy Plunges by Record 32.9% in Q2 Amid Virus Shutdowns

US Economy Plunges by Record 32.9% in Q2 Amid Virus Shutdowns

"This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending", it declared, adding, "The full economic effects of the COVID-19 pandemic can not be quantified in the GDP estimate for the second quarter of 2020 because the impacts are generally embedded in source data and can not be separately identified".

"Real gross domestic product (GDP) decreased at an annual rate of 32.9 percent in the second quarter of 2020, according to the "advance" estimate released by the Bureau of Economic Analysis", the department's news release reads.

Before coronavirus lockdowns swept the nation in March, the worst reading on U.S. gross domestic product (GDP) - which measures the value of all the goods and services produced in the economy - had been recorded in 1950, when the United States economy shrank 10 percent in the first quarter. The previous sharpest drop of 10% occurred in the second quarter of 1958.

The French economy has now shrunk for three consecutive quarters, a recession that analysts say is likely to persist even as spending begins to revive.

France's economy contracted by a record 13.8% in the second quarter of 2020 under the impact of the coronavirus lockdown, according to the national statistics institute INSEE.

Coronavirus pandemic will be with us for a long time, WHO warns
More than 68,000 cases were confirmed in the United States, and over 1,200 people died on Friday. As the COVID-19 pandemic drags on, many are becoming frustrated with lockdowns and restrictions.

The figures suggest that the decline has been similar in major economies Germany, France and Italy, but analyst Colijn warned that Spain is facing a "prolonged slump". That spending collapsed at a 34.6% annual rate last quarter as people holed up in their homes, travel all but froze, and shutdown orders forced many restaurants, bars, entertainment venues and other retail establishments to close. "We expect it will take years for that damage to be fully recovered", said Andrew Hunter, senior USA economist at Capital Economics.

Last quarter, besides consumer spending, business investment and residential housing also posted sharp declines, with investment spending sinking 27 per cent and residential housing tumbling 38.7 per cent. Tens of millions of jobs vanished in the recession.

After surging in March amid the massive job losses at the start of the pandemic, first time claims for jobless benefits have been falling for weeks, but they rose again to 1.43 million in the week ended July 25, the Labor Department said on Thursday.

President Donald Trump has pressured states to reopen businesses despite concerns that the virus remains a threat to workers and customers at many service industry jobs that require frequent face-to-face contact.

Le Maire added, "we are going to fight to do better than the minus 11 percent" forecast for the entire year by the government. As per the Trump administration, roughly 30 million people are receiving some form of jobless aid.

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