Good Bye Recession! United States Economy Grew 33.1 Percent In The Third Quarter Of 2020

Illustration. (Photo: Unsplash)

JAKARTA - The economy of the United States (US) experienced a rebound or strengthened back in the third quarter of 2020. In previous quarters, the economy of Uncle Sam's country entered the brink of recession due to the COVID-19 pandemic.

Quoting Reuters, Friday, October 30, the US economic growth in the third quarter of 2020 even recorded a record. This is the fastest pace since the government began setting a record for US economic growth in 1947.

For the record, in the second quarter of 2020, the US economy was minus 31.4 percent. And previously in the first quarter of 2020, their economy was minus 4.8 percent.

This surge in economic growth in the third quarter of 2020 is believed to be thanks to the US government, led by President Donald Trump, which issued a stimulus of more than 3 trillion US dollars. That sparked consumer spending which has been hit hard by the COVID-19 pandemic

"Biggest and best in the history of our country, and nowhere near. It's great that these big GDP figures come out before November 3," Trump wrote on Twitter.

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

However, this achievement has received criticism from Trump's Democratic challenger, Joe Biden. According to him, the US is in a deep hole because of President Trump's failure to act quickly to anticipate the pandemic.

In fact, according to Biden, even though the third quarter of 2020 recorded a record economic growth, it has not completely saved all sectors of the US economy.

"The recovery that is happening is helping those at the top, but leaving behind tens of millions of working families and small businesses," said Biden.

The stimulus package from the US government did provide a way of life for many businesses and the unemployed, boosting consumer spending, which in itself contributed 76.3 percent to the surge in Gross Domestic Product (GDP).

But government funding has run out with no deals in sight for another period of assistance, as well as new COVID-19 cases spreading across the country, forcing businesses like restaurants and bars back into trouble.

Shadowing a slowdown in consumer spending, personal income fell to a level of 540.6 billion US dollars in the third quarter. Whereas previously the figure was 1.45 trillion US dollars in the previous quarter. The decrease is associated with a decrease in government transfers related to the pandemic assistance program.

Although public saving remains high, the speed at which Americans save money is not very high. That, along with persistent layoffs and slowing job growth, is expected to hold back consumer spending in the coming months.