U.S. economy shrinks by 3.5 percent in 2020, the worst contraction since 1946
The U.S. economy amid the COVID-19 pandemic just had its worst year in over seven decades.
The Commerce Department on Thursday said the U.S. economy shrank by 3.5 percent in 2020, resulting in the worst year for growth since 1946, The Washington Post reports. This was also the U.S. economy's first yearly contraction since 2009 amid the Great Recession.
The report represented a "major disappointment and hit to the nascent recovery in the domestic economy," RSM economist Joseph Brusuelas said, per Axios. It also "showed the recovery from the pandemic losing steam" late in 2020, Reuters reports, with GDP increasing at only a 4.0 percent annual rate in the fourth quarter.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The numbers came on Thursday morning at about the same time the Labor Department reported that another 847,000 Americans filed new jobless claims last week, a decline from the week before but still a historically high number.
"The virus is in the driver's seat — there's no getting around it," Glassdoor senior economist Daniel Zhao said, per The Wall Street Journal. "Until we control the pandemic, we can't hope for a full recovery economically."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
The next place you'll find Starlink tech isn't a war zone — it's your airplane seat
Under the Radar Several major airlines are offering free in-flight Wi-Fi through the technology
By Justin Klawans, The Week US Published
-
The fishy diplomacy causing tensions between Bangladesh and India
Under The Radar Exports of a 'sacred' fish were recently suspended during difficult relations for the two nations
By Chas Newkey-Burden, The Week UK Published
-
Today's political cartoons - October 6, 2024
Cartoons Sunday's cartoons - Sunday scaries, in-fighting, and more
By The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published