GDP contracts 4.8% in first quarter, first negative growth rate since 2014

Published April 29, 2020 8:33am ET



Efforts to curb the spread of the coronavirus have also slowed the economy, with gross domestic product contracting 4.8% at a seasonally adjusted annualized rate in the first quarter, the Commerce Department reported Wednesday in a preliminary estimate.

The contraction was even steeper than economists had anticipated. Nevertheless, forecasters expect a far larger downturn in the second quarter, reflecting the full extent of the shuttering of businesses that took place across the country.

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