GDP Rose 7.4.% YOY in Q3

Washington, DC, October 29, 2020-Real gross domestic product (GDP) increased 7.4% over the prior year quarter and at an annual rate of 33.1% in Q3 of 2020, according to the advance estimate released by the Bureau of Economic Analysis. 

This represents a recovery of about 2/3 of the ground it lost due to the pandemic, reports the Wall Street Journal (WSJ). 

In the second quarter, real GDP decreased 31.4%.

“Gross domestic product-the value of all goods and services produced across the economy-jumped following a record decline from earlier in the pandemic when the virus and related shutdowns disrupted business activity across the country. That puts the economy about 3.5% smaller than at the end of last year, adjusted for inflation and seasonal fluctuations, the WSJ noted. “U.S. GDP is normally reported at an annual rate, or as if the quarter’s pace of growth continued for a full year. But the pandemic triggered extreme swings in output-a severe drop followed by a quick rebound-making the annualized numbers misleading. No one expects second- or third-quarter numbers to continue for a full year.”