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US GDP in Q2 2020 collapses by 32.9% for the first time
According to the Bureau of Economic Analysis of the Department of Commerce, U.S. GDP in the second quarter of 2020 contracted 32.9% year-over-year. The contraction of the world's largest economy was recorded for the first time in the history of statistical quarterly observation, which has been conducted since 1947.
 
US GDP in Q2 2020 collapses by 32.9% for the first time
 
Prior to that, the record for the quarterly decline in US GDP was recorded in the first quarter of 1958 - GDP fell by 10%. The record for the annual contraction of the US economy was recorded in 1932 - by 12.9%.

For comparison: Germany's GDP, the largest in Europe, in the second quarter of 2020 also declined for the first time in its history of observations - by 11.7% in annual terms. According to Bloomberg estimates, Russia's GDP will decline by 16% in the second quarter.

The country will spend at least 10 years trying to recover from the deepest recession in American history, the US Congressional Budget Office predicts. US GDP fell 2.15 trillion in the second quarter to $ 19.41 trillion. In the first quarter, GDP contracted by $ 186.3 billion.

The dollar against the euro accelerated its decline after the publication of GDP data - ahead of a repeat of the recent decline to the 2018 low. In general, the depreciation of the dollar for the month was a record over the past 10 years: the dollar in July fell by 5% against the euro, by 2.7% against the yen and by 7% against the basket of currencies of developed countries.

Fed is at a loss

The Federal Reserve System (FRS) of the United States on July 29, on the eve of the publication of data on GDP, kept the low interest rate at 0-0.25% per annum for the third time after its decline in the spring of 2020 at the peak of the pandemic.

US President Donald Trump said that disagreements with Democrats and Republicans in Congress remained on the size of a new portion of state aid for $ 1 trillion. As a result, the dollar remains under pressure, as the Fed did not rule out further easing of monetary policy and warned of economic shocks due to the wave of new cases of coronavirus. The United States maintains a policy of low rates to recover from the previous crisis of 2008-2009. From December 2008 to June 2011, the Fed bought $ 2.3 trillion in government debt, maintaining low rates and increasing investment in the economy.

"Concerns about the rise in new cases of the virus and their impact on the labor market and economic activity will be further exacerbated if Congress cannot reach agreement," said Shima Sha of Principal Global Investors.

Federal Reserve Chairman Jerome Powell acknowledged the slowdown. The US central bank kept interest rates near zero and promised to keep pumping money into the economy. Consumer spending, the main engine of the economy, contracted a record 34.6% year on year in the US in the spring. For the first time, investments in equipment and housing decreased at a huge rate - by 35-39%.

“The outlook is not very good. Americans are misbehaving in terms of social distancing, infection rates are unacceptably high, which means that economic growth cannot pick up steam,” said Son Won Son, professor of finance and economics at Loyola Marymount University in Los Angeles.
 
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    GDP of the world's countries 2019

    List of the IMF in billion. $.

      1 USA - 21482
      2 China - 14172
      3 Japan - 5220
      4 Germany - 4117
      5 India - 2957
      6 France - 2844
      7 Great Britain - 2809
      8 Italy - 2112
      9 Brazil - 1929
      10 Canada - 1820
    GDP per capita world countries 2017 (table)

    List of the IMF in $

      1 Luxembourg - 108004.9
      2 Switzerland - 79347.76
      3 Norway - 72046.29
      4 Qatar - 67269.64
      5 Macao - 61365.29
    The state debt of the countries of the world 2017

    Public debt of 2017 countries as a percentage of GDP

      1 Japan - 250,91
      2 Lebanon - 147,62
      3 Italy - 131,71
      4 Eritrea - 127,5
      5 Portugal - 127,33
      6 Cape Verde- 122,25
      7 Bhutan - 122,12
      8 Jamaica - 116,07
      9 USA - 107,48
      10 Barbados - 106,58
    Gold and currency reserves of the countries of the world 2017

    International reserves, billion USD

      1 China - 3080,7
      2 Japan - 1260,0
      3 Switzerland - 773,1
      4 European Union - 745,9
      5 Saudi Arabia - 492,9
      6 Taiwan - 444,4
      7 Russia - 419,9
      8 Hong Kong - 413,3
      9 India - 393,6
      10 Republic of Korea - 383,8

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