Big losses in arts, entertainment lead to 3.5% drop in Iowa GDP
Iowa’s gross domestic product fell 3.5% in the first quarter of 2020, behind steep declines in arts, entertainment and recreation, as the state shut down in an attempt to slow the spread of the coronavirus pandemic.
Data from the Bureau of Economic Analysis shows arts, entertainment and recreation fell 33.1% in the first quarter, the largest decline of the economic sectors that make up the GDP measurement. Accommodations and food service saw the next biggest decline, falling 24.4%.
The first-quarter decline followed small gains of less than 2% in each quarter of 2019, including a 1.3% increase in the fourth quarter.
GDP is the total value of goods and services produced within a specific period of time.
Other areas hit hard in the first quarter were transportation and warehousing, which fell 13.8%, other services at 10.7%, and health care, finance and insurance and information, which all saw declines of greater than 9%, the report released Tuesday shows.
Nationally, the GDP fell 5%, with arts, entertainment and recreation decreasing by 34.7%, followed by accommodation and food services, which saw a 26.8% decline nationally, the report showed.
Finance and insurance decreased 9% and health care and social assistance decreased 7.8%, the data showed.
Agriculture, forestry, fishing and hunting increased 15.5% nationally in the first quarter, helping to moderate the decrease in GDP in 17 states.
New York saw the largest decline in GDP in the first quarter at 8.2%, while Nebraska saw the smallest, at 1.3%.
All 50 states saw their GDP fall in the first quarter, according to the report.
In the Midwest, Illinois saw the largest decline, at 5.4%, followed by Wisconsin at 5%, Missouri at 4.7%, Minnesota at 4% and South Dakota at 2.2%.