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GDP rises in Q4, year shows overall decline of 3.5 percent

The U.S. economy ended the 2020 year with lower-than-expected GDP gains of 4 percent, below the 4.3 percent estimate by Dow Jones. The full-year GDP declined by 3.5 percent, one of the worst seen in decades.

After a year dominated by COVID-19, the economy closed 2020 in decent conditions, all things considered.

Gross domestic product (GDP), increased at a 4 percent pace in the fourth quarter, slightly below the 4.3 percent expectation from economists surveyed by Dow Jones.

Thursday’s report was the Commerce Department’s initial estimate of growth for the quarter.

Also Thursday, the U.S. Labor Department reported that first-time claims for jobless benefits totaled 847,000 last week, less than the 875,000 expected by economists polled by Dow Jones

In the Commerce report, the annualized pace closed out a 2020 that saw GDP overall decline 3.5 percent for the full year and by 2.5 percent from the fourth quarter of 2019.

The economy fell into recession in February, a month before the World Health Organization declared COVID-19 a pandemic.

The 3.5 percent decline is the worst year for the U.S. in decades, not seen since around WW2.