The U.S. Department of Commerce released an estimate of annual national gross domestic product (GDP) growth on Thursday, Oct. 29, that reached a record 33.1 percent annually, the New York Post reported.
The GDP is the measure of the value of all goods and services produced by the country, which during this last quarter, from July to September, grew by 7.4%. In the previous quarter, there was a 9% contraction, that is, the GDP had a relapse during the months of April, May and June, perhaps the period most affected by the pandemic and the forced closure of the economy.
The Commerce statement clarifies, “The increase in third quarter GDP reflected continued efforts to reopen businesses and resume activities that were postponed or restricted due to COVID-19 [CCP Virus]. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the third quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified.”
A comparison with last year still shows a relapse in the country’s economy: During the same quarter in 2019 the economy had a total of $21.7 billion in revenue while this year the figure was $21.1 billion, 2.7% less. However, the comparison doesn’t seem fair when we include the effects of the pandemic and the ineffective measures to prevent the spread of the CCP Virus.
As the Department of Commerce statement warns, the GDP growth reflects the effect of funds the federal government allocated to stimulate the economy, which increased personal consumption, private investment, and exports, and that therefore, real GDP growth cannot be estimated accurately because the origin data is artificially modified by the money people received from the government.
The road to full recovery seems steep—CCP Virus infections apparently increased, and hospitalizations have risen and so the fear that lockdowns may return in some parts of the United States as they have in France and Germany.