US economy shrinks 3.5 percent in 2020, worst decline since 1946

On an annual level, the US economy contracted 3.5 percent in 2020, the worst yearly decline since 1946, and the first yearly decline since 2009, when the country was reeling from the Great Recession.

manmadenews

Surging COVID-19 infections in December prompted business-sapping restrictions around the US in the final quarter of 2020 and dragged on the nation's economic recovery [File: Matt Rourke/AP]
Surging COVID-19 infections in December prompted business-sapping restrictions around the US in the final quarter of 2020 and dragged on the nation’s economic recovery

The United States economy continued to rebound in the final three months of 2020, but the weaker-than-expected boost was not enough to offset a contraction in the first quarter and an historic plunge in the second, leaving the world’s largest economy in the red for the year.

US gross domestic product (GDP) which measures the total output of goods and services- grew 4 percent on an annualized basis in the final three months of 2020, the US Department of Commerce said on Thursday. The figure was lower than many analysts were expecting and reflects the drag of surging COVID-19 infections and business-sapping restrictions that rampaged through the nation as 2020 drew to a close. In the third quarter ending September, economic growth surged 33.4 percent on…

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