Friday, February 27, 2009

GDP... How was It?

Traveling today with some posts to be delivered... wondering how much GDP was revised downward.

Posted by Jake at 5:30 AM
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3 comments:

  1. HemantFebruary 27, 2009 at 5:35 AM

    -6.2%

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  2. AnonymousFebruary 27, 2009 at 6:02 AM

    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?

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  3. The guy that allocates assetsFebruary 28, 2009 at 7:45 PM

    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!

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