Daily Management Review

Wealth of US citizens peaks in Q2


In the second quarter of 2020, the net worth of US households and nonprofit groups reached a record high on the back of renewed stock market growth and measures to support the economy.

According to the results of this quarter, the welfare indicator jumped 6.8% to $ 118.96 trillion, data from the Federal Reserve System (Fed) show. This is about $ 380 billion more than at the end of 2019, before the coronavirus pandemic.

Economists say the US economy and labor market are recovering faster than expected after the downturn caused by the pandemic and related restrictions. Experts polled by The Wall Street Journal expect US GDP to grow by 23.9% in the third quarter, after falling by a record 31.7% at an annualized rate in the second quarter.

At the same time, debt stock rose at a record pace in the second quarter, jumping 25.3% to $ 59.3 trillion. The previous record rise - 19.25% - was recorded in 1985.

Federal government debt rose by a record 58.9% to $ 22.58 trillion. Household debt increased by 0.5%, while consumer loans decreased by 6.6%, and mortgage liabilities increased by 3%.

Business debt increased 14% from a record 18.4% rise in the first quarter.

source: bloomberg.com