The U.S. economy shrank by 3.5% last year, the Commerce Department reported, with the country seeing both its largest quarterly GDP decline and its largest quarterly GDP increase in the second and third quarters, respectively.
Where it stands: The 3.5% decline is the worst year for the U.S. since at least the end of World War II, and the economy is more than $473 billion smaller than it was before the pandemic hit.
By the numbers: U.S. GDP increased by 4% in the fourth quarter on an annualized basis, missing estimates for 4.2% growth.
- Personal consumption rose 2.5%, missing estimates of 3.1% growth.
- Core PCE growth, which strips out food and energy, was 1.4%.