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Economic growth is better than you think

A couple of months ago it looked like GDP growth had slowed down a lot, clocking in at an anemic 1.1% in the first quarter. Then it was revised upward to 1.3%. Then, today, it was revised upward yet again:

BEA now says that Q1 growth was 2.0%. That's not barnburning, but it's respectable.

GDI was also revised upward from -2.3% to -1.8%. The average of GDP and GDI, which in some circles is considered a more accurate measure of true growth, was revised up from -0.5% to +0.1%. I don't know if this is really a better measure of growth, but it does produce a different picture than GDP alone:

Average GDP growth over the past five quarters is 1.1%. Average GDP/GDI growth is 0.3%. It's quite something not to know for sure which is really correct.

1 thought on “Economic growth is better than you think

  1. jte21

    BEA now says that Q1 growth was 2.0%. That's not barnburning, but it's respectable.

    And that's with more than a year of Fed interest rate hike headwinds, too.

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