Washington: The US economy was in recession for two months in 2020 at the beginning of the Covid-19 pandemic when the business closed their doors nationally and put employees, the committee that made the determination to say on Monday.
Economic activity peaked in February 2020 and crashed him in April, making a recession that began in March the shortest in the record, according to the business cycle dating committee of the National Economic Research Bureau (NBER), non-profit, non-plate of research organizations.
The sudden decline ended 128 months of expansion in the world’s largest economy as a city and countries throughout the country ordered a business to close or reduce operations to stop the spread of Covid-19.
But increased work and economic growth that occurred from May 2020 and so on cut short recession, said nber.
“The committee decides that every economic decline in the future will be a new recession and not a continuation of the recession associated with the peak of February 2020.
The basis for this decision is the length and strength of recovery until now,” he said in a statement.
Pandemics caused terrible damage to the largest economy in the world, with government data showing 22 million lost jobs between February and April 2020 and GDP contracted 31.4 percent, annual, in the second quarter, when their restrictions were the worst.
But the economy continued the expansion on May 2020, NB said, and in the year since recovered.
The IMF predicts the US economy can develop seven percent this year, the fastest step since 1984, after collapsing 3.5 percent in 2020, its worst year since the modern record conflict began in 1946.