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- U.S. economy expands more than forecast in Q3
U.S. economy expands more than forecast in Q3
The Commerce Department
released on Thursday its "advance" estimate for the U.S. gross
domestic product (GDP) for the third quarter of 2020, which revealed the U.S.
economy climbed more than forecast in the reviewed period.
According to the
estimate, the U.S. real GDP grew at an annual rate of 33.1 percent q-o-q last
quarter, following a record contraction of 31.4 percent q-o-q in the second
quarter, reflecting continued efforts to reopen businesses and resume
activities that were postponed or restricted due to COVID-19. That marked the strongest
pace of growth in GDP on record.
Economists had
expected GDP to expand by 31.0 percent.
According to
the report, the advance in real GDP in the third quarter reflected gains in personal
consumption expenditures (PCE), private inventory investment, exports,
nonresidential fixed investment, and residential fixed investment, which were
partly offset by declines in federal government spending (reflecting fewer fees
paid to administer the Paycheck Protection Program loans) and state and local
government spending. Meanwhile, imports, which are a subtraction in the
calculation of GDP, rose.
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