As the pandemic ridden year comes to an end in 2020, the U.S. economy closes its balances in a fairly decent shape. The U.S. GDP rose by 4% at an annual rate in Q4 2020 compared to 33% in Q3, according to the Bureau of Economic Analysis.
The rise in GDP was lower than Wall Street’s expectations of a 4.3% increase in Q4. The growth missed its mark due to a rise in imports along with slipping exports. Personal Consumption Expenditure (PCE) and disposable income also took a hit due to the halting economy.
Real GDP for the year 2020 decreased 3.5% compared to 2019 due to the pandemic induced lockdown. Q42020 GDP decreased 2.5% YoY to $309 billion, the BEA stated. A 3.5% annual decline in the GDP is the worst year for the U.S. since at least the end of World War II.