We are talking US GDP by the way.
Not only the largest, but the quickest too. Completely artificial and self inflicted though which makes the Q2 number so incredibly difficult to understand. It also makes the path forward murky and complicated. The strangest part about this is, that it was actually a little bit better than what was expected (if you can believe that). My question though is, how could you really put your finger on where the number was actually going to land when the entire economy was essentially shuttered with the exception of grocery stores and very essential services.
As the chart above shows, US GDP plunged 28+ % back during the Great Depression (yeah...I said that) which is frightening in and of itself. I guess we can take some solace in the fact that this was a medically induced coma, and not because the economy suffered some life threatening fundamental injury. Provided we can pull out of this COVID thing quickly, the long term damage should be limited. Nothing to do now but wait and see.