The Inland Empire expansion came to a halt in the first quarter,as a result of the coronavirus pandemic. According to data fromUC Riverside School of Business Center for EconomicForecasting and Development, local GDP fell .2% in thefirst quarter with expectations that the second quarter will lookfar worse. The Inland Empire has seen consistent growth since early2012.

Healthcare spending drove the decrease in GDP in the firstquarter, both nationally and for the Inland Empire. In anticipationof a surge COVID-19 patients and limited capacity, hospitals acrossthe county delayed many non-essential procedures. "Delayingprocedures that were not COVID-19 related really had an impact interms of the total GDP numbers, even though it was only two weeks.Healthcare is such a big part of the economy, the shift in theconsumption really put a dent in the nation and in the InlandEmpire," Adam Fowler, director of research at theCenter for Forecasting, tells GlobeSt.com.

This is unusual for a recession. Healthcare, as a standard, istypically unaffected by economic cycles—because people needhealthcare regardless of the state of the economy. "Healthcare isso immune to normal business cycles, and it has made it difficultto compare this event to other downturns," says Fowler. "This isunique in that it is a public health-driven downturn. The realeconomic variable is the virus and its transmission. In reality, somuch of our service sector requires robust face-to-faceinteraction."