The Economic Perspective: “Is the Economy Now Expanding?”

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.