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Second Estimate for Q1 GDP 2020 Down 5.0%, Fueled By ‘Stay-at-Home’ Orders in March

Coronavirus Mitigation Efforts Led to First Negative Reading Under Trump Administration

GDP, Coronavirus (Covid-19) virus and economic crisis, symbolized by graph with word GDP going down to picture that coronavirus affects Gdp and leads to downturn and recession, 3d illustration. (Photo: AdobeStock)

Washington, D.C. (PPD) — The Bureau of Economic Analysis (BEA) reported the second estimate for Q1 GDP in 2020 came in at -5.0%, slightly worse than the advance estimate and consensus forecast. In Q4 2019, real GDP rose 2.1%.

Forecasts for ranged from a low of -5.2 to a high of -4.5. The consensus forecast was -4.8.

“The decline in first quarter GDP reflected the response to the spread of COVID-19, as governments issued “stay-at-home” orders in March,” the BEA stated. “This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending.”

Real gross domestic income (GDI) fell 4.2% in Q1 2020 after increasing 3.1% (revised) in Q4 2019. The average of real GDP and real GDI — a supplemental measure of U.S. economic activity that equally weights GDP and GDI — fell 4.6% in Q1 after gaining 2.6% in Q4 2019.

This article is being updated.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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