Second-Quarter GDP Plunged By Worst-Ever 32.9% Amid Virus-Induced Shutdown

The coronavirus has not been easy on the nation’s economy. The US economy saw its biggest plunge in the second quarter of 2020. Even though the estimated plummet showed even more fall, the GDP figures for the second quarter still remain devastating.

The Commerce Department’s first readings were released on Thursday and the figures don’t look good. From April to June 2020, the Gross Domestic Product has plunged 32.9 percent on an annualized basis.

Economists had earlier predicted a fall of 34.7 percent. Even though the current figures have not reached that pit, it still remains the worst drop ever.

Mark Zandi, chief economist at Moody’s Analytics mentions that the report “just highlights how deep and dark the hole is that the economy cratered into in Q2. It’s a very deep and dark hole and we’re coming out of it, but it’s going to take a long time to get out.”

However, the Chief Investment Officer at Bleakley Advisory Group, Peter Boockvar remains a soothing voice. He says, “Bottom line, the numbers, of course, are alarming but all self inflicted with about half the quarter reflecting almost full shutdown and the other half the slow reopening. That said, it does reflect the hole out of which we now need to climb out of as we rebound in Q3 and Q4.”