Worst Economic Quarter
Worst Economic Quarter
We've just endured our worst economic quarter since they started keeping records after World War II.
Here is what today's economic reports mean.
Experienced its worst drop on record since the coronavirus began.
News 12's danielle moss takes a look at what this could mean for the future of our economy.
The government released two key reports this morning that shows how covid-19 is affecting our economy.
According to the commerce department, the gross domestic product, or the g-d-p fell by an annual rate of 32-point nine percent in the second quarter.
The g-d-p is the total measure of the economy.
The report shows that even with businesses reopening, the second quarter was the worst since records started in 19-47.
Chris hopkins/vp barnett and company/financial advisor-"we all see that more businesses are open and there's more activity and that's a good thing.
But, the signs are, we kind of sprung out of the bottom but now things are flattening out and we may end up having another downturn in the fourth quarter and into the first if we have to do another semi shutdown."
The g-d-p dropped five percent in the first quarter.
Some economists define a recession if there are two consecutive quarters of declining g-d-p.
Dan stand-"small businesses such as nooga shuttle started off 2020 very strong.
Even seeing sales in january increase to up to 500 percent.
But now, here in july, sales are down drastically."
David alverson/owner/ nooga shuttles-" march hit and we went down to about 60 percent, april was to about 60 percent and may was 90 percent."
Alverson says that he is just happy that his family owned business survived during these uncertain times.
David alverson/owner/ nooga shuttles-"it was scary at first.
We didn't know if we were going to survive like a lot of businesses.
We deal with a lot of limousine companies around the country and a lot of those didn't survive."
20 percent of small businesses remain closed.
Economists expect that by the second quarter of 20-21, the g-d-p could be back on track.
Chris hopkins/vp barnett and company/financial advisor-"we get back to the same growth rate we were at maybe a year from now.
But, it's going to take us another 7, 8, 9 years after that to make up everything that we lost."
In chattanooga, danielle moss news 12