Mary: This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program asks if the economy is now expanding. Mike, the broadest measure of the economy – called Gross Domestic Product – dropped by its largest amount ever during the second quarter – that is, during April, May, and June. Is the economy now doing better?
Mike: Summary Answer
- Second quarter drop was big – 32% if the trend continued for a year, and 9% for that quarter
- Economists now think we’re in a turnaround – that third quarter GDP may be up 20 to 25% on an annualized basis
- If so, that means the recession is over, and the economy is again expanding due to the opening-up of the economy
- Notice, if third quarter numbers are as expected, still won’t recover all that was lost in the second quarter
- But, economy appears to be expanding better than many thought just three months ago
- Interestingly, third quarter GDP numbers will be released on Oct. 29, just days before the election
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.