Feds: CT's 2Q economy down 31%
Image | U.S. Bureau of Economic Analysis
Connecticut's $262.7 billion economy shrunk 31.1% in the second quarter of 2020 as coronavirus-related shut downs wreaked economic havoc on all 50 U.S. states during the three-month period, new data shows.
The state's decline in second quarter gross domestic product (GDP), or the market value of goods and services produced by labor and properties, adjusted for inflation, was just shy of the national average decrease of 31.4% from April 1 to June 30, according to the U.S. Bureau of Economic Analysis (BEA).
The BEA's report on Friday shows just how destructive the global pandemic has been on Connecticut's economy since the initial outbreak during the first quarter, when the state's GDP was estimated at $288 billion after shrinking 4.6%.
The largest industry declines in Connecticut’s GDP last quarter included the health care and social assistance (-4.61%), accommodation and food services (-3.98%), durable goods manufacturing (-3.47%), professional scientific and technical services (-2.22%), retail (-2.18%) and transportation and warehousing (-1.65%) sectors.
Economies in all 50 U.S. states and Washington, D.C. shrunk between a range of 21.9% in Delaware and 42.2% in Hawaii and Nevada. Connecticut’s GDP rate ranked as the 23rd best nationally, and ahead of all other New England states (average 32.3% decline).
Nationally, the accommodation and food services, healthcare and social assistance, and durable goods manufacturing industries were most negatively impacted by the downturn.
"The decline in second quarter GDP reflected the response to COVID-19, as “stay-at-home” orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses," the BEA report states.
“This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending,” the agency continued.
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