(WYTV) – A historic decline for the economy was among the unprecedented effects of the coronavirus.
The economy shrank the fastest it has in 70 years of data. It dropped 33% for the months of April, May and June, which was a bigger fall than the Great Recession and even the Great Depression.
The economy ground to a halt as nonessential businesses shut down in an attempt to slow the spread of COVID-19. The virus is still keeping millions out of work.
There are two things to watch for as the economy recovers.
“If the pandemic continues to worsen, that will hold back the recovery,” said Bill Adams, PNC senior economist. “Number two is fiscal stimulus, which was a big part of why the economy was able to recover so quickly in May and June.”
Initial claims for unemployment were up slightly — a sign recovery seems to have slowed.
Congress is still debating between various plans for more stimulus as a $600 per week COVID-19 jobless benefit is expiring.