The COVID-19 pandemic triggered a unique business cycle, with a sharp contraction followed by an uneven recovery 📉📈

Let's break down each phase of the cycle 👇

In the years leading up to 2020, the economy was in a steady expansion for over 10 years – the longest expansion phase in American history 📈

The economy reached its peak in February 2020, with the S&P 500 hitting a record high on Feb 19.

But under the surface, the COVID-19 virus was starting to spread quickly 🌍

As lockdowns were imposed to slow the spread of the virus, the economy came to a screeching halt and entered a contraction phase 📉

GDP plunged 31% in Q2 2020, the fastest drop on record, and over 22 million jobs were lost in just 2 months 😱

As COVID cases peaked in April, the stock market bottomed and the economy hit a trough 📅

Policymakers sprung into action with massive fiscal and monetary stimulus to support the economy 💵

The recovery was swift but uneven, with some sectors bouncing back faster than others.

Tech stocks boomed as the world shifted online, while travel and hospitality lagged behind 🌐

In 2021, the economic recovery gained steam as vaccines were rolled out and businesses reopened 💉

GDP grew 5.7% for the year, the fastest since 1984, and the S&P 500 hit record highs 📈

But in 2022-23, the recovery faced new challenges from high inflation, rising interest rates and banking turmoil 🏦

This led to a brief contraction phase in the beginning of 2022, which caused bear market in stocks and concerns about a potential recession on the horizon 😰

However, GDP growth turned positive again in the 3rd quarter of 2022 and since then, the economy has once again entered a period of expansion 📈