The US economy, which has grown steadily over the past 11 years, is likely to end its longest expansion in history and enter recession. The last report provided by the National Bureau of Economic Research reveals that the country is facing its worst downturn since the Great Depression. The crisis triggered by the coronavirus pandemic has all the hallmarks of real recession. Despite the fact that this term is not commonly used yet, everything suggests that there will be no other words to describe the state of the US economy soon.
Nevertheless, the United States made every effort to prepare for any economic difficulties. Even if the country suffers from recession, it is unlikely to last long. Moreover, this crisis will hardly evolve into a repeat of the Great Depression, Goldman Sachs economists believe. They are confident that the United States will be able to stay afloat and meet the challenges in the second quarter.
"The committee recognizes that the pandemic and the public health response have resulted in a downturn with different characteristics and dynamics than prior recessions. Nonetheless, it 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," the committee said in a statement.
