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Trump Shock on GDP vs. “Core GDP” Trajectories
['Menzie Chinn']
Econbrowser
Figure 1: GDP (bold black), 2023-24 stochastic trend (gray), GDPNow (9/26) (light blue square), St. Louis nowcast (9/26) (orange triangle), IMF WEO (July) (green circle).
Source: Atlanta Fed, St. Louis Fed, IMF World Economic Outlook, July update, author’s calculations.
Figure 2: Final sales to private domestic purchasers (bold black), GDPNow nowcast of 9/26 (light blue square), 2023-24 stochastic trend (gray), all in bn.Ch.2017$ SAAR.
Source: BEA, Atlanta Fed, author’s calculations.
As this graph demonstrates, even with the fairly upbeat Atlanta Fed nowcast, private domestic aggregate demand has not returned to its pre-shock trajectory.