An empty parking lot is seen at a temporarily closed Kohl's department store, Wednesday, April 29, 2020, in Havertown, Pa. Devastated by the coronavirus, the U.S. economy is sinking. Now, as some businesses in a few states start to trickle back to work, hopes are beginning to arise that the economy, damaged as it is, might be poised to rebound by the second half of the year. (AP Photo/Matt Slocum)

US GDP fell at 5.0% rate in Q1; worse is likely on the way

June 25, 2020 - 8:43 am

WASHINGTON (AP) — The U.S. economy shrank at a 5.0% rate in the first quarter with a much worse decline expected in the current three-month economic period because of the coronavirus pandemic.

The Commerce Department reported Thursday that the decline in the gross domestic product, the total output of goods and services, in the January-March quarter was unchanged from the estimate made a month ago.

That was the sharpest quarterly decline since an 8.4% fall in the fourth quarter of 2008 during the depths of the financial crisis.

The first quarter decline reflected just two weeks of the shutdowns that began in many parts of the country in mid-March.

Economists are forecasting a much bigger GDP drop of around 30% for the current April-June period.

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