New Delhi: While the Pandemic of Covid-19 is far from above, due to the increasing number of cases in various countries sadly illustrated, the recession brought by the US economy is officially.
For some time, because the official chronicle of the US business cycle announced on Monday.
According to an official statement from the business cycle dating committee of the National Economic Research Bureau (NBER), the lowest US economy in April 2020, only two months from the previous peak in February 2020.
According to the NBER convention for economic theft cycles, the recession began in the first month after the peak In economic activities and end in the next trough month.
In this case, that means the Covid-19 recession only lasts for two months, making it the shortest in the record.
While the length of the protracted economic contraction is usually one of the three criteria for determining the recession, diffusion and duration – nber stating that “extreme conditions expressed by one partially criteria can compensate for a weaker indication of others.” In this particular case, “the amount of decline in employment and production that has been unprecedented, and wide reach throughout the economy, guarantees the appointment of this episode as a recession, even if it turns out to be shorter than the previous contraction,” as the committee properly predicted in June 2020, When it announced a recession.
Identifying the dates of trough / peaks in economic activities is a complex task carried out by the business cycle dating committee, Panel 10 famous economic researchers, which involves weighing the behavior of various indicators (eg total salary travel) to show a turning point in economic activities as accurately as possible.
When NBER notes, the end of the recession should not be mistaken to return to pre-recessional economic activities.
“Economic activity is usually below normal in the early stages of expansion, and sometimes it remains so good in expansion.” (Source: Statista)