The Bureau of Economic Analysis (BEA) reported the “advance” estimate for second quarter (Q2) gross domestic product (GDP) was -32.9% on an annualized basis, due to mitigation efforts to slow the spread of coronavirus (COVID-19). Real GDP fell 5.0% in Q1 2020.
The decline in second quarter GDP reflected the response to COVID-19, as “stay-at-home” orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses. This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending.
Bureau of Economic Analysis (BEA)
Forecasts ranged from a low of -38.5% to a high of -25.5%. The consensus forecast was -35.0%.
The advance estimate is based on incomplete data. A more complete “second” estimate will be released on August 27.
