10/29/2020 12:47 PM
Clarín.com
World
Updated 10/29/2020 1:03 PM
The United States economy grew 7.4% in the third quarter of the year compared to the previous three months, which represents
the first rebound
since the start of the coronavirus pandemic, thanks to the opening of activity due to the drop in cases in summer, the Commerce Department reported Thursday.
The data for the third quarter, the first of the three estimates made by the US Executive, comes
after the 9% drop registered between April and June
.
If the country's activity is measured on an annualized basis,
the economy grew at a rate of 33.1% in the third quarter of the year.
"The increase in the third quarter of GDP reflected the continued efforts to reopen businesses and resume activities that were postponed or restricted by the covid," explained the Commerce Department in its report.
Consumer spending, which in the US accounts for two-thirds of activity, soared 40.7% between July and September, while
business investment increased 70.1%.
Despite the large rebound last quarter, economists warn that given the current increase in cases in the United States, the country with the most coronavirus infections and deaths in the world, it
is feared that activity will soften due to the reimposition of limitations in some areas
from the country.
President Donald Trump celebrated the growth of the US economy, with the election five days away.
Photo: AP
"This is the quarter that captures the reopening of the economy ... but it is far from clearly indicating that the economy is in great shape," Tim Quinlan, an economist at Wells Fargo Securities, said in a note to clients.
The MBA consulting firm indicated in a note that it expects the growth rate to
slow down in the fourth quarter
and early next year, but estimates that the expansion will continue, as long as the current rise in COVID cases does not imply new confinements.
For the analyst Gregory Daco, from the Oxford Economics consultancy, the solid performance of the GDP "gives
a false impression
about the true state of the economy" and does not allow predicting what will happen in the fourth quarter.
The palpable uncertainty knocked down the Wall Street indicators that closed with losses of more than 3% on Wednesday, and also weighed down the exchanges of oil, a raw material very sensitive to the expectations of activity and consumption.
Although the measurement used for this indicator projects the results of a quarter in 12 months, if only this period is compared with the same period in 2019, the GDP registered a contraction of 2.9%.
On Thursday, the Labor Department released figures on
new applications for unemployment assistance, which fell for the second week in a row
to 751,000 applications, below analysts' expectations.
The financial heart of New York, half empty this Wednesday, as a new wave of coronavirus is feared.
Photo: AFP
Although claims for layoff assistance fell from their peak of 6.8 million in March, they remain higher than in the worst period of the great recession of 2007-09.
Good news for Trump
It is the last major economic indicator to be known in the US before the general elections on November 3, in which the current president, Republican Donald Trump, seeks re-election against his Democratic rival, former Vice President Joe Biden.
Within days of citizens going to the polls,
Trump took advantage of the data to criticize his
Democratic
rival
.
"The GDP figure has just been known. The highest and best in the history of our country, there is not even anything that comes close. Next year will be fantastic. However, Joe Biden and his record tax hike proposal would end all of this, "said the president on his Twitter account.
GDP number just announced.
Biggest and Best in the History of our Country, and not even close.
Next year will be FANTASTIC !!!
However, Sleepy Joe Biden and his proposed record setting tax increase, would kill it all.
So glad this great GDP number came out before November 3rd.
- Donald J. Trump (@realDonaldTrump) October 29, 2020
Biden was quick to respond, assuring that "only Trump could rate an already stagnant economy with historic levels of unemployment and business closures as the best in history."
Holidays and high risk for the virus
Experts have already expressed their concern for the coming weeks as the Halloween holidays are approaching and, above all, the Thanksgiving holiday, the most popular in the country.
In fact, several states, including Colorado, Texas, Idaho and Massachusetts, have announced
new restrictions on major outbreaks
.
"It's going to get progressively worse. Look at Europe. Europe is four weeks ahead of us," explained Christopher Murray, director of the University of Washington Institute of Health.
The United States reached the figure of 8,848,875 confirmed cases of coronavirus and 227,604 deaths on Wednesday, according to the independent count from Johns Hopkins University.
This represents 1,000 new deaths a day and takes the average daily infections of the last week above 70,000, something not registered since spring.
Source: EFE and AFP
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