WASHINGTON D.C.: The United States recorded an economic contraction at an annual rate of 19.2 percent in 2020 at the height of the Covid business closings.
However, the speed at which the economy recovered from the COVID-19-induced slump, falling at the greatest level since records began in 1947, was similarly remarkable.
The U.S. Bureau of Economic Analysis highlighted the 18.3 percent GDP rebound between Q2 and Q4 2020.
Businesses not falling under the essential category had to close in March 2020 to curb the first COVID-19 wave that battered the economy, leading to a mammoth 22 million left jobless. To minimize the impact, government relief assistance of almost $6 trillion was extended, while the Fed, as an interventional measure, dropped interest rates to zero and ensured that markets flew unhindered by buying bonds each month.
Large economic stimulus, the ultra-easy monetary policy by the Federal Reserve, as well as inoculation drives against the coronavirus disease have helped the economy to slowly come back on track, as the gross domestic product was recorded above the pre-COVID-19 level in Q2.
The government additionally confirmed the 3.4 percent economic shrinkage last year, as opposed to the earlier projected figure of 3.5 percent, thereby turning out to be the steepest that the GDP had fallen since first being monitored in 1946.
Yearly and quarter-wise growth projections were revised slightly. During the 2015-2020 period, the country's GDP had grown at an average of 1.1 percent annually, while not revised from earlier available projections.