11 Nov Q3 GDP. Click to keep reading…
The advance estimate for real gross domestic product (third quarter, 2020) increased by 33.1%. The real GDP decreased by 31.4% in the second quarter of this year. The Q3 increase is related to federal and state government efforts to reopen the economy after the COVID-19 shut down early in 2020. The increase includes renewed investment in personal consumption expenditures, private inventory, exports, nonresidential fixed investment and government spending.
While the U.S. economy also added 661,000 jobs in September, the number is a marked decrease from the 1.5 million added in August. It seems as if the recall of large numbers of furloughed workers has ended, which will keep unemployment high well into 2021.
The intensifying pandemic in much of the country right now will likely keep fourth-quarter growth to about 2.5%. As a result, the economy likely will not return to its prepandemic level until next year.
Learn more about the projected GDP growth rate at Kiplinger.com.
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