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In April-June, the economy contracted by 31.4 percent, and in the first quarter of this year, the economy contracted by 5 percent.
However, compared to July-September 2019, the economy contracted 2.9% in the third quarter of this year, after a fixed 9% in the second quarter. contraction.
“Third-quarter GDP growth reflected intensive efforts to relaunch business and economic activity that were delayed or restricted by COVID-19,” the Commerce Department said in a statement.
However, the department noted that the total “economic impact” of the coronavirus could not be assessed in isolation.
The rapid economic recovery has been fueled by rising consumer and business spending.
However, economists warn that the economic recovery was largely driven by a whopping $ 3 trillion. A government support package worth one US dollar that was approved in the first weeks of the pandemic.
Today, most of the funding for the unemployed and businesses has already been depleted, and data shows that spending fell in September and that the recovery is losing momentum.
Furthermore, the fixed growth in the last quarter was offset by a decrease in government spending: federal government spending fell 6.2 percent and state and local government spending fell 3.3 percent.
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