Economy
August 2, 2020
CRU: Historic U.S. GDP Decline in Q2
Written by Anissa Chabib
By CRU Economist Anissa Chabib from CRU’s Global Economic Outlook
The estimate of U.S. GDP for Q2 2020 shows a decline of 32.9 percent q/q. This is the biggest drop on record, but slightly better than expected. Overall, the surprisingly good data on consumption, sentiment and production released in July is due to the reopening of businesses and the massive monetary and fiscal stimulus applied by the government. However, this fast rebound will lose momentum because of the alarming resurgence of Covid-19 cases, which is already leading to a reversal of reopening across the Sunbelt and weakening fiscal support.
