GDP Report to Show Severely Damaged Economy

Associated Press: “On Wednesday, the government will offer a glimpse of how dark the picture has grown and how much worse it could get as the coronavirus pandemic inflicts ruinous damage. The Commerce Department is expected to estimate that the gross domestic product, the broadest gauge of the economy, shrank at an annual rate of 5% or more in the January-March quarter.”

“That would be the sharpest quarterly drop in GDP since the Great Recession, which ended in 2009. And it would be the first quarterly contraction in six years.”

“And yet forecasters say that will be only a precursor of a far grimmer GDP report to come for the current April-June quarter, when business shutdowns and layoffs have struck with devastating force. The Congressional Budget Office has estimated that GDP will plunge in the current quarter by a 40% annual rate. That would be, by a breathtaking margin, the bleakest quarter since such records were first compiled in 1947.”