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The table 1 says

Real gross domestic product (GDP) increased at an annual rate of 1.1 percent in the first quarter of 2023 (table 1),

1.1 percent is derived from Real GDP

They are on the Right Hand Side of the line 1 in table 3

GDP of 2023Q1: 20235.9

GDP of 2022Q4: 20182.5

while on the Left Hand Side

GDP of 2023Q1: 26,465.9

GDP of 2022Q4: 26,138.0

these are [Current] Dollar GDP.

But both use the same formula which is

[1+ (GDP of this period - GDP of previous period)/GDP of previous period]^4 -1

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1 Answer 1

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  1. They use previous quarters not seasons. There are different ways of calculating GDP growth one of them is year on year or quarter on quarter or month on month when you compare this year, quarter or month with previous season but that is not what they do here.

  2. They use real GDP as mentioned in the tables. 2022Q4: 26,138.0 and 2023Q1: 26,465.9 is nominal GDP. You need to first adjust these using deflator. If you adjust them using correct deflator you will get correct values.

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  • $\begingroup$ What is the formula used for correct deflator? $\endgroup$ May 3, 2023 at 11:08
  • $\begingroup$ @StatsCruncher in table they do not mention what exact deflator they use, by correct deflator I mean deflator from correct period. There are various formulas for deflator but the document does not mention which they use, they provide deflator in table on prices 4 but I am not sure which year deflator they use they don't mention it, you need to do trial and error for multiple years $\endgroup$
    – 1muflon1
    May 3, 2023 at 11:20
  • $\begingroup$ I got it. The real GDP is on othe Right Hand Side. And the Formula is quite different. $\endgroup$ May 3, 2023 at 11:57

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