The coronavirus pandemic ravaged the stock market when it first appeared back in February, and many suggested that it would be even worse for the global economy. These fears were well founded, as the U.S. economy shrank by 5% during the first quarter.
Real gross domestic product (GDP) decreased at an annual rate of 5.0% in the first quarter of 2020, according to the “third” estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.1%.
In the second estimate, the decrease in real GDP was also 5.0%. With the third estimate, an upward revision to nonresidential fixed investment was offset by downward revisions to private inventory investment, personal consumption expenditures (PCE) and exports.
Overall, the decrease in real GDP in the first quarter reflected negative contributions from PCE, private inventory investment, exports and nonresidential fixed investment that were partly offset by positive contributions from residential fixed investment, federal government spending and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased in this time.
A few other highlights from the report included:
- Real gross domestic income decreased 4.4% in the first quarter, in contrast to an increase of 3.1% in the fourth quarter.
- Current‑dollar GDP decreased 3.4%, or $189.4 billion, in the first quarter to $21.54 trillion. In the fourth quarter, GDP increased 3.5%, or $186.6 billion.
- The price index for gross domestic purchases increased 1.7% in the first quarter, compared with an increase of 1.4% in the fourth quarter.
- The PCE price index increased 1.3%, compared with an increase of 1.4%.
24/7 Wall St.100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
