BEA Releases 2020 Q4 GDP Report; US Experiences Worst Economic Growth in 75 Years.

The U.S. Bureau of Economic Analysis (BEA) has released the Advance GDP report for the fourth quarter.

According to the BEA, the US economy grew by 4.0% in the fourth quarter which is near the Dow Jones figure of 4.3%.

The report said that the US economy contracted by 31.4% in the second quarter before bouncing to 33.4% in the third quarter.

The increase in the GDP was attributed to increased exports, nonresidential fixed investment, personal consumption expenditures (PCE), residential fixed investment, and private inventory investment.

“The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the fourth quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified,” explained the BEA.

As for the current‑dollar GDP, it rose 6.0 percent at an annual rate, or $309.2 billion to a level of $21.48 trillion.

Gross domestic purchases grew by 1.7 percent while the PCE price index increased 1.5 percent.

The current-dollar personal income, disposable personal income, and personal saving rates have all gone down which was attributed to the impact of the COVID-19 pandemic that was further explained in their “Effects of Selected Federal Pandemic Response Programs on Personal Income,” report.

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