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US economy shrank at 4.8% rate last quarter as coronavirus struck

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www.livemint.com

WASHINGTON : The US economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country and began triggering a recession that will end the longest expansion on record.

The Commerce Department says the gross domestic product, the total output of goods and services, posted a quarterly drop for the first time in six years.

And it was the sharpest fall since the economy shrank at an 8.4% annual rate in the fourth quarter of 2008 in the depths of the Great Recession.

Forecasters say the drop in the January-March quarter will be only a precursor of a far grimmer GDP report to come on the current April-June period, with business shutdowns and layoffs striking with devastating force.

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