The map of America’s financial decline of two trillion {dollars}

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The map of America's economic decline of 2 trillion dollars

The new data shows that GDP fell from nearly $ 21.6 trillion to $ 19.5 trillion between Q1 and Q2.

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November
17, 2020

4 min read

This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.

This story originally appeared on Foro Económico Mundial

By Iman Ghosh of Visual Capitalist about FEM in Spanish

  • The new data shows that US GDP fell from nearly $ 21.6 trillion to $ 19.5 trillion between Q1 and Q2.
  • Accommodation and catering services were the sector that declined the most in 17 countries.
  • This map shows which states were hardest hit.

Accommodation and meals were hardest hit / Image: Visual Capitalist

The US $ 2 trillion crash

It took the US economy just a few months to recover from the effects of COVID-19.

As unemployment rates hit their all-time highs and businesses struggled to stay afloat, new data showed that current GDP in dollars fell from nearly $ 21.6 trillion to $ 19.5 trillion between Q1 and Q2 2020 ( seasonally adjusted for annual rates).

Although all states saw a decline, the impact was not evenly distributed across the nation. This visualization takes a look at the latest data from the Bureau of Economic Analysis and reveals the largest declines across all states. Which industries were hardest hit by the COVID-19-related shutdowns and uncertainties?

Change in GDP by government and industry

Between March and June 2020, household product orders disrupted consumer activity, health and the economy as a whole, causing United States GDP to decline 31.4% from numbers released in the first quarter.

The US economy is the sum of its parts, with each state contributing to total production, which makes the decline in COVID-19 even more apparent when the change in GDP of each is taken into account. Status.

The change in Alabama state's GDP is nearly 30%.

Alabama state GDP change is nearly 30% / Image: Visual Capitalist

Note: Changes in industry between the first and second quarters are expressed as percentage points (pp) of total GDP in current dollars.

A total of 18 states suffered the most from the food and accommodation services sector, which also suffered the most at the national level, declining 4.38%.

Hawaii was heavily reliant on tourism and, with a decline of 18.85%, hardest hit by the decline in the industry. According to the University of Hawaii Economic Research Organization (UHERO), a second wave of infections and expired financial support was behind this contraction.

Next, the health and welfare sectors were hardest hit in 17 states between the two quarters, with Tennessee declining the most (-6.25%).

The most resilient industry amid the pandemic was financial services. In the state of Delaware, where major banks like JPMorgan Chase and Capital One are located, the sector actually grew 4.47%. However, Delaware GDP still ultimately declined due to contractions in other sectors.

The worst performing state in any industry

In other words, the state of the worst performing industry is also reflected in measuring the change in percentage points (pp) contributions to GDP for the first and second quarters of 2020. Of the 21 industries profiled, Nevada is at the very end of the industry spectrum four times.

Transportation and storage have dropped nearly 10% in Alaska.

Transportation and storage have decreased by nearly 10% in Alaska / Image: Visual Capitalist

Given that many American business leaders anticipate a second economic downturn, will future numbers reflect further declines or will states rebound?