U.S. Economy Shrank in 2020 Despite Fourth-Quarter Growth

The U.S. economy grew steadily in the fourth quarter of 2020 and is forecast to continue recovering this year from the effects of the pandemic.

Despite a strong rebound in the second half of last year, the economy contracted 3.5% in 2020, measured year over year, the first decline since the financial crisis and the largest since 1946. Measured from the fourth quarter to the same quarter a year ago, the economy shrank 2.5%.

U.S. gross domestic product—the value of all goods and services produced across the economy—rose at a...