During the third quarter of 2020, the US GDP y/y variation rate registered a significant increase when compared to the previous quarter, and stood at a rate of -2.90%. This partial recovery of the economic activity was mainly driven by the increase in domestic demand. The unemployment rate registered a significant decrease compared to the previous quarter, down to a rate of 8.80%, while the employment variation rate increased up to -7.42%. Inflation stood at 1.25%, after recording a sharp acceleration compared to the previous quarter. The US dollar experienced a depreciation against the euro, recording an average exchange rate of 1.17 $/€ during the third quarter of the year.
Macroeconomic outlook report: USA 3Q20
- The U.S. economy partially recovered during the third quarter of the year and registered a year-over-year variation rate of -2.90% during the third quarter of 2020, after increasing by 6.10 p.p. compared to the previous quarter.
- This recovery was mainly driven by the increase in domestic demand as a result of the relaxation of measures adopted to address the current health crisis, as well as to the effects of the federal government's support policies on economic activity.
- Regarding the labor market, the unemployment rate decreased by 4.20 p.p. with respect to the second quarter of 2020, down to a rate of 8.80%. On the other hand, the year-on-year variation rate of employment increased by 4.87 p.p. when compared to 2Q20, recording a -7.42% rate.
- The US dollar depreciated against the euro compared to the second quarter of 2020, registering an exchange rate of 1.17 $/€ during 3Q20.
- During 3Q20, inflation in the US registered a rate of 1.25%, after accelerating by 0.81 p.p. compared to the previous quarter.
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