The Year in GDP
The Bureau of Economic Analysis released its advance estimate of GDP for 2006 on Wednesday. For the year, real GDP increased 3.4%, which is very close to the average for the postwar period. The fourth quarter was slightly better, with an annual rate of 3.5%.
Here is the breakdown of the contributions to the total from Consumption, Investment, Government and Net Exports:
2006 Total: 3.4% (C: 2.25, I: 0.75, G:0.4, NX: -0.02)
Fourth Quarter: 3.5% (C: 3.05, I: -1.92, G: 0.7, NX: 1.64)
In the last three months of 2006, the consequences of the housing bust are reflected in investment. Residential investment fell at an annual rate 19.2%, contributing -1.16 to the overall GDP change. The decline of the dollar is finally having an effect - with an assist from oil prices - exports increased at a 10% pace and imports decreased at a 3.2% rate in the fourth quarter.
The Washington Post wrote up the GDP numbers, and Econbrowser and Nouriel Roubini blogged.
Here is the breakdown of the contributions to the total from Consumption, Investment, Government and Net Exports:
2006 Total: 3.4% (C: 2.25, I: 0.75, G:0.4, NX: -0.02)
Fourth Quarter: 3.5% (C: 3.05, I: -1.92, G: 0.7, NX: 1.64)
In the last three months of 2006, the consequences of the housing bust are reflected in investment. Residential investment fell at an annual rate 19.2%, contributing -1.16 to the overall GDP change. The decline of the dollar is finally having an effect - with an assist from oil prices - exports increased at a 10% pace and imports decreased at a 3.2% rate in the fourth quarter.
The Washington Post wrote up the GDP numbers, and Econbrowser and Nouriel Roubini blogged.
posted by Bill C at 8:15 AM
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