American growth hits the “Corona” wall after 128 months of growth

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In February, the United States entered a recession after 128 months of economic growth, according to the National Bureau of Economic Research, whose definition of deflation has been modified as a result of the severity of the shock caused by the emerging Corona virus.
“The American economy witnessed the peak of its monthly economic activity in February 2020. The peak point marked the end of the growth that started in June 2009 and the beginning of a recession,” the commission’s Commission on Economic Cycle Determination said in a statement on Monday. The growth continues 128 months. ”
The traditional definition of stagnation includes the decline of economic activity for two consecutive quarters, but the committee added in its statement that it «concluded that the unprecedented size of the decline in employment and production, and its scope that includes the entire economy, requires that we consider the period of stagnation, even if it is shorter than previous contraction».
The Covid-19 epidemic, which hit the United States at the beginning of the year, claimed about 110,000 people, according to official figures, and caused great damage to the first global economy.
Local authorities across the country have taken strict quarantine measures that have cut off entire economic sectors, such as tourism and restaurants, and part of industrial production.
As a result, hundreds of thousands of Americans registered for the first time in unemployment records since March, and gross domestic product fell about 5 percent during the first quarter of the year.
Economists expect the decline in gross domestic product to reach 20 percent during the second quarter.
Nevertheless, the US economy showed some signs of recovery after the partial resumption of activity in some states, and pumped aid to companies and individuals worth nearly $ 3 trillion, in addition to pumping thousands of other billions in loans through the Federal Reserve (Central Bank).





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