US economy SHRINKS for the second straight quarter and meets the classic definition of a recession – after Biden insisted the country isn’t in one
The US economy has contracted for the second quarter in a row, meeting the classic definition of a recession.
Gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter, the Commerce Department said on Thursday.
Two consecutive quarters of negative GDP growth constitutes the informal and widely recognized definition of a recession.
But the White House has been furiously combatting the notion that six months of economic contraction equates to a recession, issuing statements and briefings to push their message that the economy remains strong.
Gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter
‘We’re not going to be in a recession,’ President Joe Biden told reporters on Monday.
Technically, a recession has to be officially declared by the National Bureau of Economic Research.
The group’s Business Cycle Dating Committee defines a recession as ‘a significant decline in economic activity that is spread across the economy and lasts more than a few months.’
The committee assesses a range of factors before publicly declaring the death of an economic expansion and the birth of a recession – and it often does so well after the fact.
Developing story, more to follow.