Sitemap

US Officially Enters A Recession Caused By COVID-19

More...

Germany Rated Top Global Leader For Third Year In A Row

Germany is the top-rated global power for...

Trump Suggests Delay To 2020 US Presidential Election

Donald Trump has suggested November’s presidential election...

Buckingham Palace Launches It’s Own Brand Of Gin

Queen Elizabeth II‘s is famous for her...

Paris Introduces Floating Movie Theatre With Socially Distant Boats

In the wake of the novel coronavirus...

News

Italy Sends Serbia The Medical Team To Help Fight COVID19

The Italian Embassy in Belgrade announces that a six-member medical team has arrived in Serbia: two anesthesiologists, one emergency...

Farewell Visit Of The Ambassador Of Israel To Serbia

Prime Minister Ana Brnabic met with Ambassador of Israel to Serbia Alona Fisher Kamm and on that occasion pointed...

Air Serbia Introduces New Measures Due To Coronavirus

Due to the coronavirus pandemic, Air Serbia re-introduced flight bans and travel restrictions and is forced to further adjust...

Binding Verdict In Favour Of ABC Serbia

After a process lasting eight years, the High Commercial Court of the Republic of Croatia has brought a binding...

EU Donates €16m For Water Transport Projects

The European Commission approved non-repayable funds in the amount of €16 million for financing projects in the field of...

The National Bureau of Economic Research said Monday the U.S. economy peaked in February, ending the longest expansion in U.S. history at 128 months, or about 10½ years.

In truth, The announcement codifies the painfully obvious. States began shutting down nonessential businesses in mid-March to contain the spread of the coronavirus, halting about 30% of economic activity and putting tens of millions of Americans out of work.

The NBER called the recession about three months after it began, the fastest such determination since the recession in 1980 and far shorter than the typical nine months to a year, says Gregory Daco, chief U.S. economist of Oxford Economics.

NBER is a nonprofit organization that conducts research on a wide range of economic issues. It’s best known for its Business Cycle Dating Committee, which calls the beginnings and ends of recessions.

The expansion began in June 2009, ending the Great Recession that started in December 2007.

The economy’s quarterly peak occurred in the fourth quarter of last year, NBER said.

Typically, an economy’s monthly and quarterly peaks coincide. This time, they happened in different periods because of “the unusual nature of this recession,” NBER said. “The economy contracted so sharply in March” that several economic measures “were significantly below their levels” in the fourth quarter.

A recession is defined as a decline in economic activity that lasts more than a few months, NBER noted. That may not hold true in this case. Employers shed an unprecedented 1.4 million jobs in March and 20.7 million in April, but the Labor Department unexpectedly reported 2.5 million job gains in May as states began allowing businesses to reopen in phases. Millions more jobs are likely to be added in June as more restaurants, shops, beauty salons and other businesses start up again.

The economy contracted at a 5% annual rate in the first quarter and is expected to shrink at up to a record 40% rate in the current quarter before mustering a strong rebound in the third quarter.

Yet the downturn, abruptly engineered by the government to curtail the virus, has been so severe that it meets the criteria for a recession, NBER said.

“In deciding whether to identify a recession, the committee weighs the depth of the contraction, its duration, and whether economic activity declines broadly across the economy,” the agency said.

NBER “concluded that the unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warranted designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.”

source USA today/Paul Davidson

Related Articles

Trump Suggests Delay To 2020 US Presidential Election

Donald Trump has suggested November’s presidential election be postponed, saying increased postal voting could lead to fraud and inaccurate results. He floated a delay...

H.E. Anthony Godfrey, U.S. Ambassador to Serbia

Why Not?

From my perspective, it’s entirely realistic to think that building stronger economic cooperation between Serbia and Kosovo is an achievable goal that will quickly...

Art

150 Years Of The Metropolitan Museum Of Art

It’s time to celebrate 150 years of the Met! The Metropolitan Museum of Art in New York City is America’s largest and most important...

16 US Cities Call In National Guard As Protests Rage

At least 30 US cities were hit with massive demonstrations over the weekend over the police-custody death of George Floyd, with more than two...

Daniel Serwer: Choices Narrowing for Serbia In Negotiations With Pristina

               Professor Daniel Serwer, Director of American Foreign Policy at Johns Hopkins School Serbia has a choice: it can...

U.S. Adds $20.3 Million In New Funds For Assistance To Serbia

The United States Government announced an additional $20.3 million in assistance to the Government of Serbia, as part of amendments to existing assistance agreements These...

Ambassador Godfrey: US to allocate 100 million rsd of additional funds for Serbia

The US Ambassador to Serbia, H.E. Anthony Godfrey, announced on his Twitter account that the United States allocated almost 100 million rsd of additional...

US Ambassador to Serbia announce US assistance in the fight against COVID-19

US Ambassador to Serbia Anthony Godfrey announced the delivery of 6,000 coronavirus test kits is expected in the coming days, which the US will...