Tuesday, August 24, 2010

GDP Breakdown by Decade

On the road today, so I will miss what Calculated Risk (i.e. the expert) believes will be a massive miss in existing home sales (consensus is currently in the range of 4.7 million units... Calculated Risk is calling for a bit above 4 million).

What I do have to offer is an update on the economy over the LONG term. Last week, EconomPic detailed that the economy grew just 1.62% annualized over the past decade in real terms (the lowest level since the 1950's). The below goes back farther and details the components that make up GDP for each decade.

Source: BEA


  1. Awesome chart. What does it tell us? It would be interesting if the investment portion could be broken out between housing and other and be done on an annual basis for the 00s. There may be some pent up demand building on the part of business investment which could bode well for the stock market. My best guess is that the numbers are dominated by the housing crisis.
    At least that's my take.

  2. I think imports have been detracting from GDP.

  3. I think we can see the lack of investment as the lack of much if any investment in the US showing up on the chart. which is very true. it also might reflect the collapse in the stock market too. Sort of wonder why imports have any thing to do with US gross domestic product.

  4. dw3- this is just change in the level. any growth in imports is a negative contribution...

  5. @Jake. Ah, I see. Thanks. I see protectionism in the 1930s. Very nice chart.

  6. I wonder how much of the negative in investment is due to:
    1) Overcapacity in the US
    2) Outsourcing of manufacturing and services

    I suspect that the impact is significant although I am not sure how to get at those numbers.