U.S. GDP Grew 33.1% in Third Quarter, Fastest Expansion Ever

Cornelia Mascio
Ottobre 29, 2020

The U.S. economy grew at a record pace in the third quarter as the government injected more than $3 trillion worth of pandemic relief which fueled consumer spending, but the deep scars from the COVID-19 recession could take a year or more to heal.

The economy is still expanding, albeit at a slower pace.

Gross domestic product rebounded at a 33.1 per cent annualized rate last quarter, the Commerce Department said in its advance estimate on Thursday. The previous post-World War II record was a 16.7% increase in 1950.

Just over half of the 22.2 million jobs lost during the pandemic have been recouped.

Democratic presidential candidate former Vice President Joe Biden, closes his umbrella as he boards his campaign plane at New Castle Airport in New Castle, Del., Thursday, Oct. 29, 2020, to travel to Florida for drive-in rallies. Though claims have dropped from a record 6.867 million in March, they remain above their 665,000 peak seen during the 2007-09 recession. "Today's report is not a victory for these families".

"The fact that claims have significantly improved from the worst parts of the crisis, while still extremely elevated at three times that of pre-crisis levels, is a daunting reality that suggests layoffs continue to ripple through the economy", he added.

With five days remaining to Election Day President Donald Trump, trailing in most national opinion polls, will likely seize on the stunning rebound in GDP as a sign of recovery. Some economists, however, had been expecting a bigger expansion following the release this week of positive data in recent news on durable good data and worldwide trade. Next year will be FANTASTIC! "So glad this great GDP number came out before November 3rd".

While current-dollar personal income (CPI), disposable personal income, and real disposable personal income all decreased in the third quarter, the report notes that this is partially due to the ending of "government social benefits related to pandemic relief programs", or the expiration of the C.A.R.E.S. Act, and "was partly offset by increases in compensation and proprietors' income".

White House Chief of Staff Mark Meadows reacted to the news on FOX Business Thursday morning, saying American people "can rejoice in this number this morning". "But I do think unemployment assistance, PPP, small business assistance, helping the schools, that could have helped a lot".

"I don't think this recovery depends on the assistance package, per se", Kudlow said.

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