GDP Update

July 30, 2014
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A strong 2014Q2 GDP report came out today, registering in at 4% annualized real GDP growth. This is good news, but it is worth looking at it in the context of the full recovery. Much of the recovery data was also revised, so we are updating our chart showing recoveries after every post WWII recession in the United States.

Here it is, including 2014q2:

houseofdebt_20140730_1

The uptick at the end of the red line is today’s strong GDP report. But it is useful to put it into the context of the longer recovery, which has been the weakest in history (by far).

 

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2 Responses to GDP Update

  1. Emily Barlow on July 31, 2014 at 6:41 ami

    How does the Great Recession compare with the Great Depression? What would another recession within the next 24 months do? Nouriel Roubini says we are at the start of another credit bubble now.

  2. Mike on July 31, 2014 at 10:10 pmi

    Bubble. The years prior to 2007 recession were a bubble. Normalizing to the peak of a bubble misrepresents trend. I agree that we are growing less than the 3% average post-ww2 growth but I am not willing to hit the panic button.