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US economic decline is worst in modern records

US economic decline is worst in modern records Photo: MGN/WDIO

ABC News/Associated Press
Updated: July 30, 2020 10:52 AM

The U.S. economy declined 9.5% in the second quarter of 2020, according to new figures released Thursday.

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The decline computes to a 32.9% annual rate in the April-June quarter, when the viral outbreak shut down businesses, throwing tens of millions out of work. The government’s estimate was the sharpest such drop on records dating to 1947.

So dizzying was the fall that most analysts expect the economy to produce a sharp bounce-back this quarter. Yet with the rate of confirmed coronavirus cases having surged in a majority of states, more businesses pulling back on re-openings and government aid to the unemployed likely to be scaled back, the economy could worsen in the months ahead.  

Stocks fell following the announcement.

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ABC News/Associated Press

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