Posted January 28, 2021

GDP increased 4.0 percent

Real gross domestic product (GDP) increased at an annual rate of 4.0 percent in the fourth quarter of 2020, according to the "advance" estimate released by the Bureau of Economic Analysis.

IGDP, Q 2020n the third quarter, real GDP increased 33.4 percent.

The increases follow a decrease of 31.4 percent in the second quarter as the full impact of Covid-19 hit. Real GDP had also fallen 5.0 percent in the first quarter after posting growth of 2.4 percent in the fourth quarter of 2019.

The increase in real GDP reflected increases in exports, nonresidential fixed investment, personal consumption expenditures (PCE), residential fixed investment, and private inventory investment that were partly offset by decreases in state and local government spending and federal government spending.

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