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The US reports GDP growth as annualized growth rate, which is the annual rate that would occur if the QoQ rate is maintained for a full year. To get the QoQ rat
by magnio 3y ago
The US reports GDP growth as annualized growth rate, which is the annual rate that would occur if the QoQ rate is maintained for a full year. To get the QoQ rate, we need to roughly divide the rate by 4 (not exact but not far off). This means the US GDP grew 1.3% in the third quarter, matching that of China.
Have to say the concept of annualized GDP growth rate is kinda gobshite. Why would you report that instead of YoY and QoQ rates is beyond me.
- throwawaymaths 3y agoGDP is itself kind of a shite metric, annualizing a quarterly is just a drop in the bucket
- stefan_ 3y agoYes, we know what annualised means. People also report annualised inflation and many other things this way. Pick a metric, report it consistently, it really doesn’t matter too much exactly which you choose. (It is ironic you would compare to China because of course their GDP reports are made up. I’m sure they use non-annualised though!)