On Monday, a survey conducted by the Cambridge, Massachusetts-based, non-profit National Bureau of Economic Research had affirmed that the US economy had ended its record-long spell of winning streak on February and had crossed the threshold of recession as a consequential repercussion of the pandemic outbreak in the United States.
In point of fact, a debarkation of steep recession into the US economy was widely anticipated, though the pace at which the recession had spread across the world’s No. 1 economy had stunned the industry analysts, since the private economic research group, which had confirmed a recession during the ages of Great Financial Depression of 2007-2009 nearly a year after the recession had begun, took only four months to confirm that the US economy had entered into a recessed territory.
Aside from that, compounding the narratives further, the US GDP (Gross Domestic Product) fell by 4.8 per cent on an annualized basis over the first quarter of the year, while the US economy has been bracing for even bleaker impact over the second quarter of the year with analysts suggesting an unemployment rate of 20 per cent or more, however, the May US private payroll data, that had reported a surprise gain of 2.5 million jobs, had suggested that the US economy might have bottomed in April and an economic growth could begin in a near-term outlook, hinting possibilities of the swiftest recovery from a recession territory.
US economy confirms recession amid unprecedented scale of job losses
Meanwhile, adding that the US economy had entered into a recession on February this year, though the recession had ascribed different dynamics and physiognomies from previous recessions, the Cambridge-based Business Cycle Dating Committee of the National Bureau of Economic Research said in a statement, “…Members of the (committee) concluded that the unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.
In deciding whether to identify a recession, the committee weighs the depth of the contraction, its duration, and whether economic activity declined broadly across the economy. ... The committee recognizes that the pandemic and the public health response have resulted in a downturn with different characteristics and dynamics than prior recessions. ” Since the World War II, US recessions usually lasted between six to eighteen months.