The U.S. economy shrank by an annualized 4.8% in the first quarter, the government said on Wednesday.
Why it matters: It’s the biggest quarterly drop in over a decade and shows the beginning of an economic slowdown that’s expected to get worse as the coronavirus roils the economy. Economists are bracing for current quarter figures, with some projecting a record annualized decline of about 40%.
What they’re saying: The coronavirus led to “rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted or redirected their spending,” the Commerce Department said in a release. Continue reading.