US Economy Shrinks at Worst Pace in 25 Years

The U.S. economy contracted by a stunning 6.2% rate during the last quarter of 2008, the U.S. Commerce Department said Friday, as the more than year-long recession deepened to levels not seen in 25 years.

According to the government’s report, U.S. GDP contracted by a seasonally-adjusted rate of 6.2% in the fourth quarter. GDP was revised down from its first read of a decline of 3.8%, which came out last month.

The contraction of 6.2% was much worse than what economists were looking for, who expected the nation’s economy to contract by 5.4% during the quarter.

It was the worst quarterly contraction in the nation’s economy since 1982, according to the Commerce Department.