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Economy drops -4.8% for first quarter, economists say 'worst is yet to come'

posted 5 years ago by [deleted]
8 replies | jump to latest

New reports released yesterday show the economy shrinking at 4.8% for 2020's first quarter, the largest contraction since the Great Recession hit and the economy dive 8.4% in the last quarter of 2008. The -4.8% comes after the fourth quarter of 2019 showed signs of slowing with a dismal growth of 2.1%. (T-rump promised us "4%, 5% even 6%" growth while he was in Office).

Consumer spending - which contributes to 70% of GDP - fell 7.6% in the first quarter; the most since 1980.

Gregory Daco, chief U.S. economist for Oxford Economics, said the first-quarter decline is "only the tip of the iceberg." Daco estimates that in the upcoming second quarter which ends June 30, the economy will be 12% smaller than it was at the beginning of the year.

Have no fear, though. Jared Kushner said yesterday on 'Fox and Friends' the economy will be back to where it was back in January by July.

[–] kukuxu (5409) 5 years ago

Gregory Daco, chief U.S. economist for Oxford Economics, said [...] upcoming second quarter which ends June 30, the economy will be 12% smaller than it was at the beginning of the year.

If he said such a thing, he wouldn't know shit about economy. I don't think that's the case, which means the most likely option is that the journalist put words in his mouth. More FAKE NEWS, in a nutshell.

What decreases is the GDP, which is the annual production. Usually the production correlates with the size of the economy. During the quarantine, though, the production decreases because the factories are forced to stop. Whether the economy shrinks or not can not be known until the quarantine ends and the stopped production starts again (or not). The annual production will be a 12% smaller, not the economy.

[–] Keelai (34864) 5 years ago

Your silly belief in magical thinking doesn't change reality by saying fake news. 30 million unemployed means the economy is in trouble. A pandemic is your idea of making America great.

[–] [deleted] 5 years ago

60,000+ dead, 30M+ unemployed, and Kushner says it's "A Great Success".

[–] PetyrBaelish (124) 5 years ago

The economy has been nearly closed for over a month now, how is this some sort of shocking news to you?

[–] [deleted] 5 years ago

Where did I say it was some sort of shocking news?

[–] kspkap (13567) 5 years ago

Your OP didn’t come across as “shocking news”...it came across as absolute GLEE! JOY! YAHOO!😱

[–] [deleted] 5 years ago

See - it's all a matter of interpretation. One T-rumptard said it came across as 'shocking', while you (another T-rumptard) say it came across as 'Glee! Joy! Yahoo!'. It just proves once again what a distorted reality the T-rumptards live in during this horrible time.

My advice: Lay off the Clorox cocktails. They're not helping any of you.

[–] Keelai (34864) 5 years ago

You're the one who believes a pandemic is making America great and wears hats and Tshirts stating the same.