The US economy expanded by an annualized 33.4% in Q3 2020, slightly higher than 33.1% in the second estimate. It is the biggest expansion ever, following a record 31.4% plunge in Q2, as the economy rebounds from the coronavirus pandemic. The upward revision primarily reflected larger increases in personal consumption expenditures and nonresidential fixed investment.
However, GDP is still 3.5% below its pre-pandemic level and although coronavirus vaccination already started, the pandemic is far from controlled. The country is recording an average of around 200K new cases every day and states are tightening restrictions. Also, Congress only approved a new $892 billion aid package late in December. It includes $600 payments to most Americans, a $300-per-week unemployment benefit and $284 billion for the Paycheck Protection Program but excludes aid for states and local governments.
