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Macroeconomic outlook report: USA

First quarter of 2020

In the first quarter of 2020, the US GDP suffered a severe contraction when compared to the previous quarter, registering a y/y growth rate of -5.00%. This behavior was mainly due to the performance of both the external and internal demand, deeply affected by the containment measures carried out both locally and around the globe to contain the spread of the COVID-19 pandemic. The unemployment rate increased to a rate of 3.80%, while the employment growth rate fell when compared to the previous quarter, down to a growth rate of 0.64%. Inflation stood at 2.09%, after recording an increase when compared to the previous quarter. Regarding the US dollar, it slightly appreciated against the euro, to an average exchange rate of 1.10 $/€ during the first quarter of the year.

 

Macroeconomic overview

  • The US economy suffered a severe contraction and registered a year-over-year rate of -5.00% during the first quarter of 2020, decreasing by 7.10 p.p. when compared to the previous quarter.
  • This performance was mainly due to the decreases registered in both the domestic and external demand, which were heavily affected by the containment measures carried out to mitigate the spread of the COVID-19 virus.
  • Regarding the labor market, the unemployment rate increased 0.30 p.p. with respect to the fourth quarter of 2019, reaching a rate of 3.80%. On the other hand, the year-over-year growth rate of employment fell by 0.54 p.p. when compared to 4Q19, recording a 0.64% rate.
  • The US dollar slightly appreciated against the euro reaching an exchange rate of 1.10 $/€ during 1Q20.
  • During 1Q20, inflation in the US stood at 2.09%, after a 0.08 p.p. increase when compared to the previous quarter.

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© GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.