Traveling today with some posts to be delivered... wondering how much GDP was revised downward.
I need some context. According to the report, GDP increased 1.1% for all of 2008, despite the economy being in a recession for the entire year.How is this possible?
Dave- Real GDP growth does not need to be negative for the economy to be in recession. Recessions are determined by a panel of economists at the NBER; they look at employment data, incomes, industrial production, GDP, and many other economic indicators. It's more of an art than a science.It should also be noted that the -6.2% number is ANNUALIZED, i.e., the quarterly change is multiplied by four. In order for a year-over-year GDP decrease of -6.2% four consecutive quarters would need to see -6.2% annualized economic growth. Hope that helps!