The US economy rebounded, growing 33.1% in the third quarter of 2020

ILLUSTRATION. The economy of the United States (US) rebounded in the third quarter of 2020 after entering the abyss of recession in previous quarters.

Source: Reuters | Editor: Khomarul Hidayat

KONTAN.CO.ID – WASHINGTON. United States (US) Economy rebound in the third quarter of 2020 after entering the abyss of recession in the previous quarters.

The US economic growth even set a record in the third quarter of 2020 as the US government issued more than US $ 3 trillion in aid that triggered consumer spending which has been hit hard by the corona pandemic.

Reuters reported, the US gross domestic product (GDP) grew 33.1% on an annual basis in the 2013 quarter.

This is the fastest pace since the government began setting a record for US economic growth in 1947. In Q2 2020, the US economy was minus 31.4%.

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This economic growth report is one of the last major economic scorecards before next week’s presidential election.

With five days remaining until Election Day, President Donald Trump, following most of the national polls, will likely capitalize on the stunning rebound in GDP as a sign of economic recovery.

But US production remained below its levels in the fourth quarter of 2019, a fact that Trump’s Democratic challenger Joe Biden will almost certainly highlight, along with signs that the boom in economic growth is rapidly abating.

Economists surveyed by Reuters expected the US economy to grow 31% in the July-September 2020 quarter. The US economy has slipped into recession since February 2020.

The government’s rescue package provided a way of life for many businesses and the unemployed, increasing consumer spending, which in itself spurred a surge in GDP.

But government funding has run out with no agreement in sight for another round of assistance. New coronavirus cases are spreading across the country, forcing restrictions on businesses such as restaurants and bars.

More than half of the 22.2 million jobs lost during the pandemic have been recovered, and layoffs continue.

A separate report from the US Department of Labor on Thursday (29/10) showed that as many as 751,000 people filed for unemployment benefits in the week ended October 24, down compared with 791,000 in the previous period.

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