US GDP shows a record drop since World War II

Last year, the US gross domestic product fell by 3.5%, which was the worst performance since the Second World War. This is stated in the report of the Bureau of Economic Analysis of the US Department of Commerce.

The report shows that the country’s economy experienced a significant decline for the first time since the 2008 financial crisis. Then GDP declined by 2.5%. Simultaneously, as reported in the department, on an annual basis in the last quarter of 2020, the US economy grew by 4%. At the same time, in the first quarter, the country’s economy declined by 5%, in the second — by a record 31.4%, and in the third — also grew by a record 33.4%.

The ministry said that the decline in the world’s largest economy last year was the strongest since 1946 when the indicator fell by 11.6%. According to the report, the annual fall in US GDP occurred for the first time in 11 years.

According to initial estimates, the real growth rate of consumer spending in the United States for the fourth quarter was 2.5% annually, while in the third quarter, this figure increased by 41%. At the same time, according to preliminary estimates, the US economy in the last quarter of 2020 decreased by 2.5% year-on-year. In the first quarter, in annual terms, there was an increase of 0.3%, in the second — a fall of 9%, in the third-a decrease of 2.8%.

Last week, the Chinese authorities published data claiming that its GDP grew by 2.3% in 2020. This is the lowest growth rate since 1976. Back then, China’s economy shrank by 1.6%. In recent years, the growth rate of the Chinese economy has exceeded 6% per year. In 2017, the country’s GDP growth was 6.8%, in 2018-6.6%, and 2019-6%.

At the same time, China has shown a high economic recovery rate after the outbreak of the COVID-19 coronavirus and against the background of rivalry in trade with the United States. The Chinese economy accelerated in the fourth quarter and was “in surprisingly good shape” by the end of the year, even in the face of a pandemic. If at the end of the first quarter, China’s GDP fell by 6.8%, then in the second it grew by 3.2%, in the third-by 4.9%, in the fourth-by 6.5%.

If you have found a spelling error, please, notify us by selecting that text and pressing Ctrl+Enter.

Author: Ivan Maltsev
The study of political and social problems of different countries of the world. Analysis of large companies on the world market. Observing world leaders in the political arena.
Function: Chief-Editor
Ivan Maltsev

Spelling error report

The following text will be sent to our editors: