US GDP revised up to 4.3% in fourth quarter 2020

ANKARA

The US' gross domestic product (GDP) was revised slightly upwards to an annualized rate of 4.3% in the fourth quarter, according to the Commerce Department's third and final reading of the data on Thursday.

While the first reading was a 4% increase and the second was 4.1%, analysts expected a 4.1% for the final reading.

The revision was due to increases in private inventory investment and state and local government spending, the agency’s Bureau of Economic Analysis said in a statement.

There were also increases in construction, durable goods manufacturing, finance, insurance industries, in addition to health care and social assistance sectors.

After the economy shrank by a record 31.4% in the second quarter, GDP increased 33.4% in the third quarter.

The American economy contracted 3.5% in 2020 due to the coronavirus pandemic -- its worst decline since 1946.

The world's largest economy is still struggling with a weak labor market and high unemployment.