Anyone surprised in this?
Shutting the economy down for several months hurts the bottom line…..
No wonder Governor’s are now trying hard to NOT do that again….
Neither is the new President…..
The old President’s inaction on the pandemic started this, which only began to try to recover when we know we’d be having a new President…
One of the last major economic report cards of the Trump era lends perspective to the historic damage caused by the pandemic, which continued to weigh on growth in the final quarter of 2020.
By the numbers: The U.S. economy grew at a 4% annualized pace in the fourth quarter, a sharp slowdown in growth compared to the prior quarter. For the full year, the economy shrank by 3.5% — the first annual contraction since the financial crisis and the worst decline since 1946.
What happened: A resurgence in coronavirus cases and a delay in additional government aid contributed to the pullback in growth. In the third quarter, the U.S. economy grew at a 33.4% annualized pace.
- In normal times, a 4% annualized growth rate would be strong. But in pandemic times, it shows the sharp bounce back expected once the economy reopened wasn’t sustained.
What they’re saying: The report “represents a major disappointment and hit to the nascent recovery in the domestic economy,” Joseph Brusuelas, an economist at RSM, wrote in a note.
Zoom in: Economic growth in the final quarter of the year was driven by strong consumer spending, capital expenditures (i.e. businesses investing in equipment, buildings, etc.) and the hot housing sector….