U.S. GDP fell 4.8% in Q1, vs. the expected 3.5% decline.
Gross domestic product fell 4.8% in the first quarter, according to government numbers released Wednesday that provide the first detailed glimpse into the deep damage the coronavirus wreaked on the U.S. economy.This marked the first negative GDP reading since the 1.1% decline in the first quarter of 2014 and the lowest level since the 8.4% plunge in Q4 of 2008 during the worst of the financial crisis.
Most economists see the U.S. in recession already even though the technical definition is generally two consecutive quarters of negative growth. The fourth quarter of 2019 saw GDP rise 2.1%. The coronavirus lockdown "led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the first quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified," the bureau said in a statement.
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