During the fourth quarter of 2020, GDP y/y growth rate continued to reduce its contraction, although at a much more moderate pace compared to 3Q20, registering a year-on-year growth of -2.50%. Economic activity continued to recover as a result of the increase in exports, private consumption and investment throughout the end of the year, following the strong momentum gained during the previous quarter. The unemployment rate registered a decrease, reaching a rate of 6.70%, while the employment growth increased to -5.58. Inflation decreased compared to the previous quarter, and stood at a rate of 1.22%. Regarding the US dollar, it experienced a depreciation against the euro, to an average exchange rate of 1.19 $/€ during the fourth quarter of the year.

 


Macroeconomic outlook report: USA 4Q20

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Macroeconomic overview

  • The U.S. economy experienced an improvement and registered a year-over-year rate of -2.5% during the fourth quarter of 2020, increasing by 0.30 p.p. when compared to the previous quarter.
  • The economy’s performance was mainly due to the increase in exports, private consumption and investment as a result of the relaxation of measures adopted to address the current health crisis and by the effects of the federal government's support policies on economic activity since the previous quarter.
  • Regarding the labor market, the unemployment decreased by 2.10 p.p. with respect to the third quarter of 2020, reaching a rate of 6.70%. On the other hand, the year-on-year growth rate of employment increased by 1.79 p.p. when compared to 3Q20, recording a -5.58% rate.
  • The US dollar depreciated against the euro compared to the third quarter of 2020, registering an exchange rate of 1.19 $/€ during 4Q20.
  • During 4Q20, inflation in the US registered a rate of 1.22%, after a deceleration of 0.03 p.p. compared to the previous quarter.

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