Author Topic: The new GDP methodology: What you need to know  (Read 479 times)

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Offline pjohns

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The new GDP methodology: What you need to know
« on: July 31, 2013, 05:46:31 PM »
The Obama administration has now revised the way that GDP is calculated, thereby increasing the last quarter's GDP from 1.3 percent to 1.7 percent.

Of course, even 1.7 percent growth is quite anemic.  Just a bit less so than 1.3 percent growth is.

In all fairness, it should probably be noted that such a change has been under discussion for awhile now; and it appears that several other countries are going to go ahead with this revision.

Still, one could easily be pardoned for suspecting political motives at work here, concerning the timing of this happy-face change.

Here is a bit from MarketWatch on the subject:

What’s the upshot? The rate of growth hasn’t changed all that much, though there are big shifts in a few time periods. But the level of output is higher — $559.8 billion larger, with $526 billion of that amount due to definitional changes.

And the link:  The new GDP methodology: What you need to know - Slide Show - MarketWatch

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