1
$\begingroup$

We often hear that the GDP grew 2 % the past quarter, or something like that.

But we are also told the GDP grows annually about 2-3 % every year.

How can both be true? If the GDP grows 2 % in just one quarter, surely annual growth rate should be closer to 8-10 %?

$\endgroup$
1
$\begingroup$

This question overlaps with the question: link to question on quarterly/annual GDP.

Since you are referring to news commentary, I just want to add that the standard in the United States is to quote annualised quarterly GDP figures (e.g. 2.0% annualised roughly equals 0.5% on the quarter), while European countries (e.g., Germany) often quote the non-annualised quarterly growth rate. (These are the conventions used by the national statistical agencies when quoting growth rates, and the business press usually follows the local convention when reporting on the results.) This difference sometimes can cause confusion in international comparisons.

$\endgroup$

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.