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U.S. GDP booms at 33.1% rate in Q3, better than expected
- nabla9 6y agoQuick question for HN users. When you read the title what you think it means? [1] GDP is 33.1% higher than it was in Q2. Rate of growth is 33.1% per quarter. [2] GDP is 33.1% higher from year ago (annualized). [3] If GDP grows whole year at the same pace as it did in Q3 it would grow 33.1% over the year.
- DamnYuppie 6y agoI read it as #1. Usually when they reference a quarter they mean the change is from the previous quarter.
- nabla9 6y agoUnfortunately the correct answer is #3. The US has peculiar way to report quarterly GDP growth rates that is different from what I'm used here in EU. In the US official reports comes from BEA. They use quarter-on-quarter growth rate expressed on an annual basis. Quater-on-quater growth rate QonQ = (Q4-Q3)/Q3 (they use real rate that is inflation adjusted). Then they convert it into annual basis so that reported rate is (1+QonQ)^4 -1 In other words, the GDP grew 7.4% inflation adjusted from the last quarter. https://www.bea.gov/resources/methodologies/measuring-the-economy https://www.bea.gov/resources/methodologies/measuring-the-ec...