The new data shows that GDP fell from nearly $ 21.6 trillion to $ 19.5 trillion between Q1 and Q2.
4 min read
This story originally appeared in the World Economic Forum
By Iman Ghosh of Visual Capitalist about FEM in Spanish
- The new data shows that GDP in the US fell from nearly $ 21.6 trillion to $ 19.5 trillion between Q1 and Q2.
- Accommodation and catering services were the sector that declined the most in 17 countries.
- This map shows which states were hardest hit.
Accommodation and meals were hardest hit / Image: Visual Capitalist
The US $ 2 trillion crash
It took the US economy just a few months to recover from the effects of COVID-19.
As unemployment rates hit their all-time highs and businesses struggled to stay afloat, new data showed that current dollar GDP rose from nearly $ 21.6 trillion to $ 19.5 trillion between Q1 and Q2 2020 (seasonally adjusted to Annual rates).
Although all states saw a decline, the impact was not evenly distributed across the nation. This visualization takes a look at the latest data from the Bureau of Economic Analysis and reveals the largest declines across all states. Which industries have been hardest hit by the COVID-19-related shutdowns and uncertainties?
Change in GDP by government and industry
Between March and June 2020, household product orders disrupted consumer activity, health, and the economy as a whole, causing United States GDP to decline 31.4%, according to figures released in the first quarter.
The US economy is the sum of its parts, with each state contributing to total production, which makes the decline in COVID-19 even more apparent when the change in GDP of each is taken into account. Status.
Alabama state GDP change is nearly 30% / Image: Visual Capitalist
Note: Industry changes between Q1 and Q2 are expressed as percentage points (p.p.) of total GDP in current dollars.
A total of 18 countries suffered the most from the food and accommodation services sector, which also suffered the most at the national level, falling by 4.38%.
Hawaii was heavily reliant on tourism and, with a decline of 18.85%, was hit hardest by the decline in the industry. According to the University of Hawaii Economic Research Organization (UHERO), a second wave of infections and expired financial support was behind this contraction.
Next, the health and welfare sectors in 17 states were hit hardest between the two quarters, with Tennessee declining the most (-6.25%).
The most resilient industry amid the pandemic was financial services. In the state of Delaware, where big banks like JPMorgan Chase and Capital One are located, the sector actually grew 4.47%. However, Delaware GDP still ultimately declined due to contractions in other sectors.
The worst performing state in any industry
Looking at it differently, the worst state of the industry is also evident when measuring the change in percentage points (pp) of contributions to GDP for the first and second quarters of 2020. Of the 21 profiled industries, Nevada appears four times at the lower end of the spectrum in extreme cases.
Transportation and storage have decreased by nearly 10% in Alaska / Image: Visual Capitalist
Given that many American business leaders are anticipating a second economic downturn, will future numbers reflect further declines or will states manage to recover?