The United States gross domestic product (GDP) fell 32.9% in the second quarter of 2020, the Department of Commerce reported, marking the largest decline the country has ever seen, according to CNBC.
In addition to the record drop in GDP, The Department of Labor reported Thursday that over 1.43 million Americans filed initial claims for unemployment last week, marking a swift economic contraction as coronavirus cases continue to rise across the country.
The report also comes as the $600-per-week unemployment benefits are set to expire on July 31, risking the financial security of millions of Americans.
Despite the deadline fast approaching, bipartisan talks have been largely unproductive and have stalled in recent days, Bloomberg reported.
“We are still very far apart on a lot of issues,” Treasury Secretary Steven Mnuchin told reporters Wednesday as he left a meeting with Speaker Nancy Pelosi, according to Bloomberg.
The report comes as the rise in coronavirus cases increases the likelihood that some states may temporary close businesses once again, further contributing to the economic decline. Several states in the Southern and Western US have consistently reported over 10,000 new cases daily, and on Wednesday it was confirmed that over 150,000 Americans have died from the virus, according to a Johns Hopkins University database.
The rising case count also threatens the reopening of schools across the country. While some schools are set to return to in-person classes tomorrow, some of the largest districts in the country have announced that they will begin the academic year online in order to prevent the virus’ spread.