Many headlines will say GDP fell 32.9%.— Justin Wolfers (@JustinWolfers) July 30, 2020
What they mean is that it fell at an annualized rate of -32.9% which is the result of a thought experiment asking how much lower would GDP be if the recent rate of decline persisted for a year.
But no-one thinks that'll happen. Ignore it
The *quarterly* drop in GDP is likely larger than experienced at any point in the Great Depression. But that's not because the Great Suppression is deeper (yet). Rather, the Great Suppression played out more quickly than the Great Depression so the bad news was more concentrated.— Justin Wolfers (@JustinWolfers) July 30, 2020
Some context: Personal income actually rose a staggering 7.3% in Q2, even as GDP fell -10%.— Justin Wolfers (@JustinWolfers) July 30, 2020
The difference? An extraordinary level of government support through economic impact payments, unemployment assistance, and PPP for businesses.
(Source: https://t.co/yySlEONgoU) pic.twitter.com/TJZ5r73LvW