Written by Emily Liu
The U.S. Commerce Department reported that the U.S. economy reached historically high levels of expansion during the third quarter of 2020 on Thursday, October 29. Following an unprecedented 31.4 percent dive in the second quarter, the U.S. GDP rose a total of 33.1 percent. This, according to CNN reporters, marked the “fastest growth rate since the government began to track quarterly GDP data in 1947.” Although this news brings hope to U.S. citizens, experts are still cautious of the future of the U.S. economy.
With COVID-19 cases still steadily rising, worries of more severe lockdown restrictions have surfaced. Another lockdown would undoubtedly have similar effects on the economy as it did during the second quarter. Additionally, unemployment rates have not been promising: 12.6 million Americans are currently unemployed. Personal income has even dropped by $541 billion from its $1.45 trillion increase in the second quarter.
Keeping these economic factors in mind, many economists are expecting a much less dramatic expansion in the fourth quarter. Both CNBC and CNN reports are estimating a less-than-10 percent expansion rate for the final quarter of 2020.