The US Department of Commerce announced the second estimates for the Gross Domestic Product (GDP) data for the period October-December 2020.
Consequently, US GDP increased 4.1 percent on an annualized basis in the fourth quarter of last year.
Although the GDP data was revised up in that period, the market’s expectation was that the economy would grow 4.2 percent in the fourth quarter.
In the country’s leading GDP data released in January, it was noted that the economy grew 4 percent in the fourth quarter of last year.
The US economy contracted 5 percent in the first quarter of last year due to the Covid-19 epidemic and quarantine measures taken against the epidemic, and following a record contraction of 31.4 percent in the second quarter. , grew 33.4 percent in the third quarter with the relaxation of the measures taken against the epidemic.
The nation’s economy contracted 3.5 percent in 2020, the worst performance since 1946. The US economy grew 2.2 percent in 2019.
The continuation of the economic recovery, which began with the relaxation of the strict measures implemented due to the Covid-19 outbreak, was decisive in the GDP growth of the fourth quarter. However, the restrictions put into practice with the increase in Covid-19 cases meant that the epidemic continued to affect the country’s economy, while slowing its growth.
The growth performance of the US economy during this period was partially offset by the increase in exports, fixed investments, personal consumption expenses and investments in private stocks with the decrease in state and local government spending and federal government spending. . Imports also increased in the same period.
On the other hand, the revision of the GDP for the fourth quarter was determined by the upward revisions in fixed investments, investments in private stocks and expenditures of state and local governments with the downward revision in the personal consumption expenses.
In the fourth quarter of last year, the increase in the price index for personal consumption expenditures was revised from 1.5 percent to 1.6 percent. The basic price index for personal consumption expenditures, which excludes food and energy expenditures, increased 1.4 percent in this period.