Revisions show slightly smaller GDP drop last year

Jul 29, 2021, 5:42 AM | Updated: 9:37 am

WASHINGTON (AP) — The U.S. economy contracted by a slightly smaller amount last year than previously reported and grew slightly more in 2019 and slightly less in 2018.

Those are the results from the government’s annual benchmark revisions of the gross domestic product, the economy’s total output of goods and services, that were released Thursday.

This year, the government took the revisions all the way back to 1999 but the new GDP estimates, based on updated source data, showed only small changes or in many years, no changes at all to GDP growth.

For 2020, the GDP shrank by 3.4%, slightly less than the 3.5% reported before the revisions. The slight upward revision reflected newfound strength in such areas as state and local government spending which offset downward revisions to business investment and exports.

The 3.4% decline in 2020 was still the biggest annual decline for GDP since an 11.6% drop in 1946 when the country was demobilizing after World War II.

The GDP revisions Thursday boosted growth slightly to 2.3% in 2019, up from 2.2%.

Growth was trimmed to 2.9% in 2018, down from the previously reported 3%, a figure the Trump administration often cited as evidence that Donald Trump’s economic policies were working better than the policies of the Obama administration.

Growth in 2017 was unchanged at 2.3% and 2016 growth remained at 1.7%.

For this annual revision, the government used updated statistics to make changes to GDP going all the way back to 1999. However, all the changes were very small, usually just one-tenth of a percentage point up or down. Growth in 1999 remained unchanged at a sizzling 4.8%.

The modifications to GDP will not affect the decisions of the National Bureau of Economic Research on when last year’s recession began and ended. The NBER uses a range of data including unemployment levels in addition to GDP to date the beginning and end of recessions.

The panel of academic economists on the NBER’s cycle dating committee announced earlier this month that the recession triggered by the coronavirus pandemic ended in April 2020, just two months after it had started, making it the shortest downturn in U.S. history.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Indictment says ex-NSA worker thought he was helping Russia

DENVER (AP) — A former National Security Agency employee from Colorado charged with espionage thought he was sending classified information to Russia when he was talking to an undercover FBI agent, according to court documents released Friday. Jareh Sebastian Dalke is accused of six counts of attempting to provide documents and information related to national […]
16 hours ago
Two people hug after a shooting at the John W. Harshbarger Building on the University of Arizona ca...
Associated Press

Ex-grad student held in Arizona professor’s fatal shooting

TUCSON, Ariz. (AP) — A former University of Arizona graduate student arrested in the fatal shooting of a hydrology professor was being held without bond Friday after a judge ruled there was enough evidence to try him on charges of first degree murder and aggravated assault. An interim complaint in the case released Friday says […]
16 hours ago
FILE - Michael Flynn, former national security adviser to former President Donald Trump, speaks to ...
Associated Press

Flynn, Gingrich testimony sought in Georgia election probe

ATLANTA (AP) — The Georgia prosecutor investigating whether then-President Donald Trump and others illegally tried to interfere in the 2020 election filed paperwork Friday seeking to compel testimony from a new batch of Trump allies, including former U.S. House Speaker Newt Gingrich and former national security adviser Michael Flynn. Fulton County District Attorney Fani Willis […]
16 hours ago
FILE - Immigrants seeking asylum who were recently reunited arrive at a hotel in San Antonio, July ...
Associated Press

Families separated at border push back on new evaluations

WASHINGTON (AP) — Parents suing after being separated from their children at the U.S-Mexico border are pushing back against a Justice Department effort to require additional psychological evaluations to measure how much the U.S. policy traumatized them, court documents show. The effect of the Trump-era policy that was maligned as inhumane by political and religious […]
16 hours ago
First lady Jill Biden gestures while meeting with medical professionals and students during a visit...
Associated Press

Jill Biden: ‘How could we go back?’ after Roe is overturned

Jill Biden on Friday used the story of how one of her teenage friends ended a pregnancy at a time when abortion was illegal, including being declared mentally unfit, to illustrate what she says is at stake for women in November’s elections. “How could we go back to that time?” the first lady asked in […]
16 hours ago
FILE - Vanderbilt University Medical Center in Nashville, Tenn., is pictured on July 16, 2013. The ...
Associated Press

VUMC to pause, review gender-affirming surgeries for minors

NASHVILLE, Tenn. (AP) — Officials at Vanderbilt University Medical Center announced Friday that they are pausing gender-affirming surgeries for minors in order to review their practices. The news, delivered in a letter sent to a lawmaker who has demanded an end to the surgeries, was publicly released Friday afternoon. It comes amid mounting political pressure […]
16 hours ago

Sponsored Articles

...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
Revisions show slightly smaller GDP drop last year