U.S. GDP Shrank at a 5% Annual Rate in the First Quarter
The United States Commerce Department reported that the gross domestic product fell at an annual rate of 5% in the first quarter. This is the biggest quarterly decline since the fourth quarter of 2008 when the GDP fell 8.4%. We expect the annualized number to be much higher in the second quarter, due to the shutdown of the economy and high unemployment numbers. We will keep you updated as new economic data develops.
IRS Increases HSA Limits for 2021
On Wednesday, the Internal Revenue Service issued its annual inflation adjustment for health savings accounts. For 2021, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan will be $3,600, up $50 from 2020. In addition, the annual limitation for an individual with family coverage will be $7,200, up from $7,100 in 2020, according to Financial Planning. Health savings accounts can be extremely useful tools for long-term health and even estate planning. If you would like to discuss if an HSA would be the right fit for your situation, we would love to help.
New Single-Family Home Sales Increased 0.6% in April
Economists projected new single-family home sales to increase by 480,000 annualized in April. Actual sales increased at a rate of 623,000, easily beating projections. While the 0.6% increase may not look impressive, it's strong considering April was the height of the economic shutdown and social distancing. Sales are still down 19.5% from January and 6.2% from a year ago, but the increase suggests the economy is beginning to stabilize earlier than expected.
China Approves National Security Law in Hong Kong
On Thursday, China's legislature approved a plan to suppress subversion, secession, terrorism, and seemingly any acts that might threaten national security in Hong Kong, according to the New York Times. The law, which is expected to take effect in September, will threaten the autonomy of Hong Kong. Over the years, Hong Kong has become a worldwide hub for trade and culture. If the Chinese government decides to take full control, it will disrupt trade across the world.
Some Good News
Since the COVID-19 outbreak began, we have made it a point to share some good news at the end of our bullet points. Today, we share some good news about 'Some Good News'. The John Krasinski YouTube show has reportedly sold to ViacomCBS and will continue, according to The Hollywood Reporter. While it is unclear how ViacomCBS will use 'Some Good News', it is clear that Krasinski will not host future episodes. Instead, he plans to stay on as a producer.
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