Due to the 2020 COVID-19 pandemic, the World Bank predicts the global economy will shrink by 5.2% (Global Economic Prospects). While the National Bureau for Economic Research has found that the US economy is officially in a recession with the economy drastically changing course in March of 2020 (It's Official: U.S. Economy Is In A Recession). The number of job losses for March and April of 2020 was more than the number of jobs created in the last nine years(U.S. Economic Outlook and Monetary Policy). Second Quarter USA GDP (Gross Domestic Product) for 2020 decreased an at annual rate of 32.9 % (Bureau of Economic Analysis, 2nd Quarter GDP News Release), while for the same period EU (or the Eurozone) saw their GDP decline by 12.1% (DW, Eurozone drops 12.1% in record pandemic plunge).
"A recession is a downturn in the business cycle that occurs when the real gross domestic product (GDP)—the total output of goods and services produced by the U.S. population—declines for at least two consecutive quarters, or six months. Recessions are usually characterized by a general decrease in output, income, employment, and trade lasting from six months to a year." (Gale Encyclopedia of US History).
In some ways this recession is different than the 2008-9 financial crises. This recession has seen mass unemployment, supply chain issues, as well as disruptions to total industries (travel, tourism, etc.) however the stock market remains profitable though volatile.
5729 Fogler Library · University of Maine · Orono, ME 04469-5729 ; (207) 581-1673