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- U.S. economy expands in line with forecasts in Q4
U.S. economy expands in line with forecasts in Q4
The Commerce
Department released on Thursday its "advance" estimate for the U.S.
gross domestic product (GDP) for the fourth quarter of 2020, which revealed the
U.S. economy grew in line with economists’ forecast in the reviewed period.
According to
the estimate, the U.S. real GDP rose at an annual rate of 4.0 percent q-o-q
last quarter, following a record growth of 33.4 percent q-o-q in the third
quarter, reflecting both the continued economic recovery from the steep
declines earlier in the year and the ongoing impact of the COVID-19 pandemic,
including new restrictions and closures that took effect in some areas of the
United States.
Economists had
expected GDP to expand by 4.0 percent.
According to
the report, the advance in real GDP in the fourth quarter reflected gains in
exports, nonresidential fixed investment, personal consumption expenditures
(PCE), residential fixed investment, and private inventory investment, which,
however, were partly offset by drops in state and local government spending and
federal government spending. Meanwhile, imports, which are a subtraction in the
calculation of GDP, rose.
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