HOUSTON, Aug. 5, 2020 /PRNewswire/ -- The BBVA Research team published its economic analysis of the drop in gross domestic product for second quarter 2020, noting it is the steepest decline in over-the-quarter growth since 1937, in the aftermath of the Great Depression.
As noted in the published analysis, the GDP dropped by 32.9 percent on an annualized basis and has contracted more than $2 trillion, implying a drop of 9.5 percent year over year.
The report underscores how idiosyncrasies of the COVID-19 pandemic have led to unusual fluctuations in consumption and investment that could continue over time. Personal consumption expenditures dropped by more than 34 percent in the second quarter. While the consumption of both goods and services dropped, consumption of motor vehicles and recreational equipment actually increased. Purchases of household furnishings fell by more than 10 percent, while consumption of clothing and footwear dropped to levels not seen since 2009.
Growth for the first half of 2020 has been exactly in line with the economic outlook published by BBVA Research in April, and the team is maintaining its expectations for growth in 2020 of -5.1 percent. However, recent spikes in the number of Covid-19 in hotspots around the country and the resulting shift to more cautious behavioral responses suggest that the risks are firmly tilted to the downside, according to the report.
Led by Nathaniel Karp, BBVA USA's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA USA operates. Follow their work on Twitter @BBVAResearch and @BBVANews_USA.
Read the full analysis here.
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BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.
SOURCE BBVA USA