The U.S. economy contracted 3.5% in 2020 due to the coronavirus pandemic, marking the nation’s worst economic performance since the end of World War II.
The U.S. gross domestic product (GDP), which measures net services and goods produced by a country, fell 3.5% in 2020 compared to the 2.2% increase in 2019, according to a Bureau of Economic Analysis (BEA) report released Thursday. The overall decline came despite 4% growth in the fourth quarter, the period from October to December, and 38.3% growth in the third quarter, the period from July to September.
The U.S. economy blew the barn doors off all other past recoveries with a record, inflation-adjusted 33.1 percent gain in the Gross Domestic Product (GDP) — more than any other quarter in economic history — in the last major economic report before the election in November.
That is great news for the American people, and it certainly bodes well for President Donald Trump in his bid for reelection against former Vice President Joe Biden as the race for 2020 comes down to the wire. It comes as more than 14 million jobs have been recovered since labor markets bottomed in April amid the Covid state-led lockdowns, according to the Bureau of Labor Statistics.
The U.S. economy grew by a record 33.1% in the third quarter of 2020, as employers continue to restore jobs and the country continues to feel the effects of the coronavirus pandemic.
The Department of Commerce figure released Wednesday reflects the rate of decline in U.S. gross domestic product (GDP) during the third quarter, from July to September. The economy plunged by 31.4% in the second quarter of 2020, a record drop caused by government measures to combat the spread of coronavirus, according to The Associated Press.