Skip nav to main content.

How COVID-19 Made the Economy Ill

Real gross domestic product (GDP) decreased in all 50 states and the District of Columbia…

  • July 27, 2020

Real gross domestic product (GDP) decreased in all 50 states and the District of Columbia in the first quarter of 2020, according to statistics just released by the U.S. Bureau of Economic Analysis.

The percent change in real GDP in the first quarter ranged from -1.3 percent in Nebraska to -8.2 percent in New York and Nevada.

Accommodation and food services; finance and insurance; healthcare and social assistance; and arts, entertainment, and recreation were the leading contributors to the decrease in real GDP nationally.

Accommodation and food services was the leading contributor to the decrease in Nevada.

Finance and insurance was the leading contributor to the decrease in New York.

Other highlights

Accommodation and food services decreased 26.8 percent nationally and contributed to the decreases in all 50 states and the District of Columbia.

This industry was the leading contributor to decreases in 29 states and the District of Columbia, including Hawaii the state with the third largest decrease.

Finance and insurance; healthcare and social assistance; and arts, entertainment, and recreation decreased 9.0 percent, 7.8 percent, and 34.7 percent, respectively, and also contributed to the decreases in all 50 states and the District of Columbia.

Agriculture, forestry, fishing, and hunting increased 15.5 percent nationally. This industry was the leading contributor to moderating decreases in 17 states including Nebraska, the state with the smallest decrease.

The 2020 Q1 estimates of GDP by state were impacted by the response to the spread of COVID-19, as governments issued “stay-at-home” orders.

This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending.

The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP by state estimates for 2020 Q1 because the impacts are generally embedded in source data and cannot be separately identified.