Real gross domestic product (GDP) decreased in all 50 states and the District of Columbia, in the first quarter of 2020 compared to the last quarter of 2019, as a result of the widespread shutdowns across the country due to COVID-19. The U.S. Bureau of Economic Analysis reported the real GDP growth rates, measured on a seasonally adjusted annual rate basis, ranged from -1.3% in Nebraska to -8.2% in New York and Nevada.
Nationwide, real GDP growth decreased to 5.0% in the first quarter of 2020, after an increase of 2.1% in the previous quarter. Accommodation and food services; finance and insurance; healthcare and social assistance; and arts, entertainment, and recreation were the leading contributors to the decline in real GDP in the first quarter of 2020.
Regionally, real GDP growth rates, ranged from -6.6% in Mideast to -2.8% in Southwest in the first quarter of 2020 compared to the last quarter of 2019.
According to the industry statistics, 17 of 22 industry groups contributed to the first quarter decline in real GDP. Of the five industry groups that recorded increases in the first quarter real GDP, agriculture, forestry, fishing, and hunting was the largest contributor, increasing 15.5% while construction increased 0.8%.
Real value added (a measure of an industry’s contribution to GDP) for arts, entertainment, and recreation decreased 34.7% in the first quarter, reflecting cancellations in performing arts and spectator sports. Accommodation and food services industry group decreased 26.8%, reflecting “stay-at-home” orders and closing of in-dining restaurants and bars. Accommodation and food services was the leading contributor to the decrease in Nevada, which tied for the largest GDP decrease with New York. Finance and insurance industry group’s real value added decreased 9.0% and health care and social assistance industry group, real value added decreased 7.8% in the first quarter. Finance and insurance industry group was the leading contributor to the decrease in New York.
