(AmericanProsperity.com) – Gross Domestic Product (GDP) reflects a country’s job security, product demand, and tells citizens about the overall health of the economy. While Americans knew the economy struggled over the past few months, a recent GDP report shows how extensive the damage was from the COVID-19 pandemic and mandated lockdowns.
The US Bureau of Economic Affairs, a section of the Department of Commerce, released its advance estimate of the second quarter’s GDP. It shrunk with a 32.9% annualized rate from April through June this year, making it the largest drop on record since these reports began in 1947.
This drastic drop in the GDP reflects changes in American spending habits, which is a result of lower overall economic output and high unemployment numbers. However, Justin Wolfers reminds us that we must look forward:
As horrific as the GDP number is, it's basically reporting something that we all already knew — that economic activity came to a screeching halt as the virus altered the contours of our lives. Millions lost their jobs, and the real issue is how our economy recovers.
— Justin Wolfers (@JustinWolfers) July 30, 2020
Only when Americans feel safe going to work and spending their money will the economy begin to recover. Ensuring those two things will secure the future of our nation and our businesses.
~Here’s to Your Prosperity!
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