Financial Associated Press (Shanghai, Editor Wu Bin) News , on Thursday evening Beijing time, the U.S. Department of Commerce released GDP data. Although the economy rebounded slightly in the fourth quarter, GDP still shrank by 3.5% in 2020, setting a new low since 1946. It is also It was the first negative value since 2009.
(Source: BEA)
The initial value of the annualized quarterly rate of real GDP in the United States in the fourth quarter of 2020 was 4.0%, which was basically in line with expectations. The previous value was 33.4%. Exports, non-residential fixed investment, consumer spending, residential investment and other areas boosted GDP in the fourth quarter, while an overall decline in government spending at the federal, state and local levels held back.
It is worth noting that consumption, the backbone of the U.S. economy, partially supported the economy during the epidemic. Personal consumption expenditures accounted for 68% of the U.S. economy, growing by 2.5% in the fourth quarter. Total private investment increased by 25.3%, while government spending and investment fell by 1.2%.
At the same time, the initial claims data released on Thursday was slightly better than expected. The number of people applying for unemployment benefits for the first time in the United States last week was 847,000, compared with the estimate of 875,000, and the previous value was revised up to 914,000.
As the epidemic is still raging in the United States, the U.S. economy is still not doing well in the first quarter of this year. Gus Faucher, chief economist at PNC, said: "Economic growth in the first quarter of 2021 is likely to be very weak, with an annualized rate of less than 1%. The record number of infections at the beginning of the year has made consumers more cautious, States have reimposed more restrictions on economic activity, albeit in a more targeted manner than at the beginning of the pandemic.”
The impact of the new wave of epidemics has been clearly reflected in employment data. From May to November last year, the United States 12.5 million jobs were restored, but another 140,000 were lost in December.
However, the market expects U.S. economic growth to accelerate after the first quarter of 2021. As more and more people are vaccinated, the economy is expected to rebound strongly later this year. Federal Reserve Chairman Powell vividly said on Wednesday: "Nothing is more important to the economy than people who are vaccinated."
