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Comment on Red-Hot Inflation & (Inflation-Adjusted) Strong Domestic Private-Sector Demand Marks Q2 GDP. Debt-to-GDP Ratio Dips to 121.5% by Reticent Herd Animal
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Comments for Wolf Street
But adjusted for inflation, “real GDP” rose by only 1.5%, according to the GDP data from the Bureau of Economic Analysis today.
In the years between the Great Recession and the pandemic (so excluding recessions), average quarter-to-quarter GDP growth was 2.5% annual rate.
The difference between this growth rate of 7.9% in current dollars, and the growth rate of “real” GDP of 1.5% was the above mentioned red-hot 6.3% inflation in Q2 GDP.
Imports are a negative in GDP, and this surge of imports deducted 1.51 percentage points from the 1.5% GDP growth.
Exports are a positive in GDP and contributed 0.50 percentage points to the 1.5% GDP growth.