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U.S., Germany see huge falls in GDP during second quarter Updated: 2020-07-31 13:40:36 KST

The COVID-19 pandemic has taken an unprecedented toll on the global economy, with the U.S. and Germany recording their steepest ever drops in gross domestic product.
According to statistics released by the U.S. Commerce Department on Thursday, the country's economy shrank at a 32.9 percent annual rate during the second quarter.

"Consumer spending accounts for 70 percent of economic activity in the U.S. so the steep contraction last quarter was driven by the lockdown."

This is the largest quarterly decline since such figures were first recorded in 1947.
The plunge was far greater than the eight.four percent fall in the fourth quarter of 2008 at the peak of the global financial crisis.
The expert said he expects the U.S. economy to see an upswing in the second half of the year as the economy hit its lowest point in the second quarter.

"I believe vaccines will be developed and will be distributed in the fourth quarter. If that happens, I expect the U.S. economy to recover at a fast pace and reach the level it was at before the pandemic.

Such news comes as Germany, Europe's biggest economy, also recorded a huge drop in GDP.
During the April to June period, Germany's economy shrank by 10.1 percent on-quarter, as exports and business investment collapsed.
The plunge far exceeded the fall of 4.7 percent in the first quarter of 2009 during the global financial crisis.
Experts around the world are looking for signs of improvement during the third quarter, but they say high unemployment and limited consumption could slow the pace of economic recovery.
Eum Ji-young Arirang News.
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