US GDP shrank at a 4.8% annualized rate in Q1 due to the coronavirus pausing the economy. It is the biggest decline since the Great Recession as depicted in the graph posted here.
Are we in a recession? Most experts agree that a recession happens when the economy shrinks for at least two fiscal quarters in a row — in other words, six months. Note that this report is the period ending March 31. That is a period that does not include all the massive layoffs that has resulted from the coronavirus that started in mid-March. That leads me to suspect a recession was on the way even before the virus had really impacted the country. We can all see where this is going.
Some economists are predicting a rapid turnaround once stay at home orders are lifted. Personally, I can’t imagine sitting in a restaurant until their is a vaccine for covid 19. I might walk through the mall and I will defintely go places to take picures with my mask in place. The Hollywood Bowl and other theater settings are out of the question.
Source: U.S. Bureau of Economic Analysis
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