1/ New estimates from @BEA_News show that North Carolina's inflation-adjusted GDP dropped to $505.9 billion from $512.6 billion between 2019.q4 & 2020.q1. #NCeconomy bea.gov/data/gdp/gdp-s…
2/ As a reminder, GDP by state reflects the "market value of goods and services produced by the labor and property located in a state." GDP statistics provide the most comprehensive gauge of economic activity in a given location.
3/ Between 2019.q4 & 2020.q4, inflation adjusted GDP in North Carolina fell by 1.3%. If the observed decline in the quarter were to continue for a full year, inflation-adjusted GDP in the state would decline by 5.1%. (Think of it like a compound interest rate.)
4/ The decline is due to the onset of the COVID-19 crisis in late March, which resulted in the adoption of various state & local stay-at-home orders. @NC_Governor declared initial state of emergency on 3/10, closed schools on 3/14, & closed restaurants/bars for dine-in on 3/17.
5/ The largest driver of the drop in GDP in North Carolina was manufacturing, which contributed 1 percentage point to the total decline. The second-largest contributor was accommodation & food service, which contributed 0.9 percentage points to the total decline. #NCeconomy
6/6 Second quarter estimates will not appear until Oct., but they also are apt to be negative given how the entire quarter unfolded against a backdrop of state & local stay-at-home orders & a historic increase in unemployment. #NCeconomy
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