News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Friday, October 2, 2020
BEA 20—50

Gross Domestic Product by State, 2nd Quarter 2020
Decreases in All States and the District of Columbia in the Second Quarter

Real gross domestic product (GDP) decreased in all 50 states and the District of Columbia in the second quarter of 2020, as real GDP for the nation decreased at an annual rate of 31.4 percent, according to statistics released today by the U.S. Bureau of Economic Analysis. The percent change in real GDP in the second quarter ranged from -20.4 percent in the District of Columbia to -42.2 percent in Hawaii and Nevada (table 1).

Chart: Percent Change in Real GDP by State, 2020Q1
Coronavirus (COVID-19) Impact on the Second-Quarter 2020 GDP by State Estimates

The decline in second quarter GDP reflected the response to COVID-19, as "stay-at-home" orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses. This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified.

Accommodation and food services; healthcare and social assistance; and durable goods manufacturing were the leading contributors to the decrease in real GDP nationally (table 2). Accommodation and food services was the leading contributor to the decreases in Hawaii and Nevada.

Other highlights

  • Accommodation and food services decreased 88.4 percent nationally and contributed to the decreases in all 50 states and the District of Columbia. This industry was the leading contributor to the decreases in 17 states and the District of Columbia.
  • Healthcare and social assistance decreased 48.1 percent nationally and contributed to the decreases in all 50 states and the District of Columbia. This industry was the leading contributor to the decreases in 18 states, including Tennessee the state with the third largest decrease.
  • Durable goods manufacturing decreased 43.3 percent nationally and contributed to the decreases in all 50 states and the District of Columbia. This industry was the leading contributor to the decreases in eight states.
  • Finance and insurance increased 11.9 percent nationally. This industry moderated decreases in real GDP in 48 states and the District of Columbia. This industry was the leading offset to the decline in Delaware, the state with the smallest decrease in real GDP.
Annual Update of Gross Domestic Product by State

The estimates of 2020:Q2 GDP by state incorporate the results of BEA's annual update of GDP by state that was also released today. The annual estimates of GDP by state for 1997 to 2019, and quarterly estimates of GDP by state for 2005:Q1 to 2020:Q1 were revised (table 4). The update incorporates new and revised source data that are more complete and more detailed than previously available, updates to seasonal factors, and the results of the July 2020 annual update of the National Income and Product Accounts and the September 2020 annual update of the GDP by Industry statistics.

Next release: December 23, 2020 at 10:00 A.M. EST
Gross Domestic Product by State, 3rd Quarter 2020