US economy suffers its most severe contraction in more than a decade in the 1st quarter of 2020

The US economy suffered its most severe contraction in more than a decade in the first quarter of the year, as the country introduced lockdowns to slow the spread of coronavirus.

The world's largest economy sank at an annual rate of 4.8%.

It marked the first contraction since 2014, ending a record expansion.

But the figures just hint at the full crisis, since many of the restrictions were not put in place until March.

Policymakers at America's central bank says the pandemic "is causing tremendous human and economic hardship across the United States and around the world.

The US has tried to cushion the economic blow with nearly US $3tn in new spending, including direct payments to many families. The Federal Reserve has also taken with a slew of emergency steps, including lowering interest rates to near zero.

[Source: BBC]