A new report from the government shows just how destructive the COVID-19 crisis has been…
A new report from the government shows just how destructive the COVID-19 crisis has been for the U.S. economy.
According to the Bureau of Economic Analysis real gross domestic product (GDP) decreased at an annual rate of 32.9 percent in the second quarter of 2020. This is astonishing.
Current‑dollar GDP decreased 34.3 percent, or $2.15 trillion, in the second quarter to a level of $19.41 trillion. In the first quarter, GDP decreased 3.4 percent, or $186.3 billion.
The decline in second quarter GDP reflected the response to COVID-19, as “stay-at-home” orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses.
This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending.
The decrease in real GDP reflected decreases in personal consumption expenditures (PCE), exports, private inventory investment, nonresidential fixed investment, residential fixed investment, and state and local government spending that were partly offset by an increase in federal government spending.
Imports, which are a subtraction in the calculation of GDP, decreased.