US GDP drops 4.8%

According to the first estimate, US GDP in the first quarter of 2020 fell by 4.8%. Analysts had expected a decrease of 4%. A negative impact on the economy was exerted by measures of social isolation in response to the coronavirus pandemic.

A key component of GDP (consumer spending) fell by 7.6%. At the same time, private gross investment continued to decline for the fourth quarter in a row, losing another 5.6%. Exports fell by almost 9% and imports by 15%.

It is worth considering that the negative impact of COVID-19 on the country's economy began in March. In this regard, experts predict an even more significant blow to the economy in the II quarter. Here, drop estimates range from 20% to 40%.