Perspectives: Record Quarterly Drop in GDP Drives Economic Speculation, Stimulus Talks

U.S. gross domestic product (GDP) dropped at an annual rate of 32.9% in the second quarter of 2020, the largest such drop on record. Speculation soon followed about how the fall could impact the country's economic rebound from the COVID-19 coronavirus pandemic, and in a more immediate sense, could impact the November presidential election and ongoing negotiations between lawmakers about a potential new virus relief package. Some left-rated voices tied the numbers to President Trump's recent remarks about a possible election delay, framing his comments as an effort to distract voters from negative economic data. Some right-rated voices used the data to offer a look ahead at how the U.S. economic recovery will pan out, mentioning that some major industries such as construction and manufacturing are beginning to resume operations. Coverage on all sides of the spectrum noted the data's historic significance. Editor's Note: this post originally described the 32.9% drop as a quarterly rate, rather than the annual rate. We regret the error. Updated 7/30/20 at 8:53 p.m. ET