Business Cycle Dating Committee of the U.S announced that the U.S Recession hit by the pandemic last year lasted only two months, ending in April 2020.
The month of March of the same year marked a sharp downturn in economic activities.
The Committee comprises a group of economists who decide the start and end date of the business cycles in the U.S. The Committee also pointed out that the economy has not yet recouped the economic downturn, and the operational capacities are still deficient.
Still, it clearly pointed out that April 2020 was a tough time for the economy that started to rebound in May.
However, the resumption of the economic activities was rapid in May, but the downturn required depth and duration to regain momentum.
The months of March and April marked the highest economic downturn in 2020, leading to 22 million job cuts approximately.
The event then sparked a new concern of depression and led the U.S federal government to approve massive relief packages. The relief packages helped the firms and households stay afloat.
The Committee stated the end date of the Recession is of historical note. Still, it is also relevant to study the dynamics of the business cycle and the historic policies laid out by the White House and U.S officials.
The announcement of the end data of the Recession makes it the shortest on record. The six-month-long Recession was recorded in 1980, and the four-month-long Recession was recorded in 2001, which had marked the collapse of the tech bubble.