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US records sharpest contraction since 1946 in 2020

US records sharpest contraction since 1946 in 2020

Data released on Thursday showed the world’s biggest economy reported its worst contraction since 1946 in 2020, as the pandemic hardly hit the U.S. economy. 

The U.S. reported a contraction of 3.5% last year, following a growth of 2.2% in 2019. In the fourth quarter, the economy expanded 4%, coming below forecasts of 4.2%, compared to a record growth of 33.4% in the third quarter. 

“The increase in fourth quarter GDP reflected both the continued economic recovery from the sharp declines earlier in the year and the ongoing impact of the Covid-19 pandemic, including new restrictions and closures that took effect in some areas of the United States,” the Commerce Department said. 

As of 14:20 GMT, the dollar index reversed its earlier gains, falling from a high of 90.83 to trade at 90.55 after the dull economic data. 

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