Key points
- Usually reported quarterly and annualized in the US.
- Composed of consumption, investment, government spending, and net exports.
- Negative GDP growth in consecutive quarters is a common recession shorthand.
Example
US GDP grew at an annualised rate of about 5% in Q3 2023, driven by consumer spending (about two-thirds of GDP) despite high interest rates.
In history
First estimates showed US GDP shrinking in both Q1 and Q2 2022, yet unemployment stayed near 3.6%, sparking debate about whether this was a recession. Later revisions showed the economy close to flat in the second quarter.
Related terms