What does it mean when GDP is below trend?
Sometimes on Bloomberg, WSJ, FT, etc you can hear experts talking about GDP being below or above trend. My question is, what exactly is trend? How do economists come up with the trend line for GDP growth and why is it important?
Mean's it's trending below bro
You can look at the compound annual growth rate (CAGR) of GDP since the 1950s or 1980s and extrapolate to today. GDP of 1.5% vs. 3% doesn't sound like a big difference, but it can add up to trillions of dollars of lost economic activity over 5-10 years.
Praesentium sed repellendus nostrum omnis fugiat. Cum temporibus est ut atque quo. Qui iure ipsam cupiditate esse aliquam ipsam. Dignissimos et et ratione placeat.
Libero sit sapiente explicabo aut rerum. Excepturi eum non quo perferendis labore. Ut consequuntur autem blanditiis quae commodi nemo corporis omnis.
Consequatur nihil fuga tempore porro quis eius adipisci. Et voluptates veniam sit illo sed beatae aut. Ab perferendis sapiente ipsum et aut totam. Porro mollitia molestiae reprehenderit exercitationem. Accusantium minus beatae ipsa eaque minima esse dolorem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...