Newsweek - USA (2020-05-22)

Horizons

40 NEWSWEEK.COM MAY 22, 2020

Where This Recession

Ranks In History

The pandemic-driven downturn roiling the economy hasn’t

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PD\VWDFNXSLQWKHUHFRUGERRNVŜSarah Dreher

BY THE NUMBERS

śƠ The projected

annualized drop in U.S. GDP for the

second quarter of 2020 (based on

an estimated 11.8 percent decline

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–89%

How much stock

prices fell, as mea-

sured by the Dow

Jones Industrial

Average, during the

ɿrst three years of

the Depression.

Nothing since has

come close: Stocks

fell 54 percent

during the ɿnancial

crash of 2007-09

and 36 percent

from the February

peak to March this

year (but no telling

yet if the worst

is behind us)

Past Economic

Contractions

This is how much

GDP fell, from the

peak of the economic

cycle to when it hit

bottom, during other

notable downturns

of the past century.

GREAT DEPRESSION

(1929–33)

Ƥ –26.7%

GREAT RECESSION

(2007–09)

Ƥ –5.1%

RECESSION OF 1973–75

Ƥ –3.2%

RECESSION OF 1981–82

Ƥ –2.7%

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SOURCES FEDERAL RESERVE BANK OF ST. LOUIS, CONGRESSIONAL BUDGET OFFICE, BUREAU OF LABOR STATISTICS, NATIONAL BUREAU OF ECONOMIC RESEARCH, U.S. DEPARTMENT OF LABOR

$191,200,000,00 0