Samuel Stebbins, 24/7 Wall St. via The Center Square
The U.S. economy reported its worst quarterly decline in modern history during the COVID-19 pandemic, with gross domestic product shrinking at an annual rate of 31.4% in the second quarter. The economy bounced back in the third quarter, but efforts to contain the virus’s spread throughout 2020 still resulted in a 3.5% annual economic contraction in the United States.
Arriving on the heels of a historic period of growth, COVID-19 brought about a decline in gross domestic product in every state in the country. However, no two state economies are alike, and partially as a result, some states were hit far harder than others.
Economic output fell by 2.5% in Georgia in 2020, a smaller contraction than in most states. The smaller than average economic decline during the COVID-19 pandemic in the state was due in part to strong performances in the utilities and finance, insurance, and real estate sectors, which each had a net positive impact on economic growth in the state. Declines in industries hard-hit by the pandemic like transportation and entertainment, recreation, and hospitality were also less pronounced in Georgia than they were nationwide.
Economic decline brought about job losses in Georgia. Overall employment in the state fell by 4.6%, or 214,000 jobs, in 2020.
States are ranked based on the percentage change in real GDP from 2019 to 2020. Data on GDP and industry-specific real GDP came from the BEA. Data on average annual employment and the seasonally adjusted monthly unemployment rate each came from the Bureau of Labor Statistics.
|Rank||State||Change in GDP, 2020 (%)||April 2021 unemployment (%)||Change in nonfarm employment, 2020 (%)|