Trends in Real Gross Domestic Product

Trends In Real Gdp From 2020 To 2021
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Real Gross Domestic Product
Real Gross Domestic Product (GDP) is a macroeconomic value that measures the total production and consumption of goods and products in the U.S., adjusted for inflation (McConnell et al., 2018). According to the Bureau of Economic Analysis (BEA, 2021), the real GDP for the first quarter of 2021 increased by approximately 6.5 per cent, an increase from the 4.3 per cent recorded in the fourth quarter of 2020. This can be attributed to the gradual reopening of the country by the government, which had been closed down in the previous year in response to the COVID-19 pandemic.
The third quarter of 2020 recorded the highest level of real GDP, increasing at an annual rate of 33.1 per cent, which translates to a quarterly increase of 7.4 per cent (BEA, 2021). This, according to Kumar (2020), showed a rebound of the economy from impacts of the coronavirus pandemic. This increase is ascribable to the gradual reopening of the country and government intervention responses to the pandemic, which led to the recovery of the economy, which had otherwise been adversely affected by the worldwide pandemic. This value contrasts sharply with the second quarter real GDP value, which recorded the least amount of growth (BEA, 2021). The current dollar real GDP in this quarter decreased by an annual rate of approximately 34 per cent. This decrease reflected the restrictions on trade and movement that had been put in place in March and April to ease the spread of the COVID-19 virus. As a result of the imposed lockdown on the country, there were massive shift...