U.S. GDP sees historic percentage drop due to COVID-19

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SPRINGFIELD, Mass. (WWLP) – The U.S. economy suffered the worst period in history over the past three months as a result of the ongoing coronavirus pandemic.

Gross domestic product or GDP for the U.S. fell a historic 32.9 percent in the second quarter. GDP is all the goods that are produced in the US.

The people impacted the most are those in the travel, hospitality, and entertainment industry which have seen some of the hardest hits during the coronavirus pandemic.

Much of the fall is directly related to the shutdowns of those industries over the last three months.
But the stock market is steady because economists are looking towards the future and saw this drop coming.

Mark Teed, senior vice president of investments at Raymond James and Associates told 22News that while the losses are unfortunate, we should see a rise soon.

“Each quarter it should start to get back that 33 percent we lost we should get back on track maybe two quarters, maybe three quarters or four but we will get that back,” said Teed. “It could take two years because about 9 percent of our worker base is related to travel or airlines or entertainment.”

Teed says the stock market is already looking into 2021 and is expecting earnings to be up 59 percent in the second quarter.

But right now he says anyone whose job had to do with dealing with the public is way down but that jobs are starting to explode. Teed says that within the next three quarters the economy should be looking back to something we call normal.

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