US 3Q Economic Growth Rate 33.1%... Exceeds Expectations with Strong Performance (Update)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The United States recorded a 33.1% economic growth rate in the third quarter (July-September). This sharp rebound followed a 31.4% plunge in the second quarter due to the COVID-19 pandemic, but with the virus resurging, future prospects remain uncertain.

On the 29th (local time), the U.S. Department of Commerce announced that the third-quarter Gross Domestic Product (GDP) growth rate was 33.1% annualized compared to the previous quarter. This marks a turnaround from the 31.4% decline in the previous quarter and exceeds the Dow Jones consensus estimate of 32%.

With this, the U.S. recorded its first economic growth increase this year. The U.S. had also recorded a 5% negative growth in the first quarter.

The sharp increase in third-quarter growth is attributed to the revival of consumption, which accounts for about two-thirds of GDP.

CNBC reported that the U.S. economy showed the fastest recovery pace in the third quarter. According to CNBC, the previous highest GDP growth record was 16.7% in the first quarter of 1950.

Following the GDP growth rate announcement, Dow Jones Industrial Average futures have reduced their losses.

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