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Economy

US economy shrinks at record pace in second quarter

GDP contracts at 32.9% annualized rate as labor market struggled

Hundreds of people line up outside a career center in Frankfort, Kentucky, seeking assistance with their unemployment claim.   © Reuters

WASHINGTON (Reuters) -- The U.S. economy contracted at its steepest pace since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus.

The bulk of the historic plunge in gross domestic product reported by the Commerce Department on Thursday occurred in April when activity almost ground to an abrupt halt after restaurants, bars and factories among others were shuttered in mid-March to slow the spread of coronavirus.

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