GDP is the most often cited measure of how our economy is doing. The U. S. Bureau of Economic Analysis reported that U. S. Real GDP grew at an annual rate of 1.9% in the third quarter of 2019. 1) Where did the growth come from? 2) Using GDP as your reference, how is the economy doing and how will it do in 2020?

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Mathematics

Giada Atkinson

25 May, 07:45

GDP is the most often cited measure of how our economy is doing. The U. S. Bureau of Economic Analysis reported that U. S. Real GDP grew at an annual rate of 1.9% in the third quarter of 2019. 1) Where did the growth come from? 2) Using GDP as your reference, how is the economy doing and how will it do in 2020?

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Paula Bean · Answer 1

1. Growth came from personal and government spends and other investments.

2. Economy is slowing down and reflects weaker outlook in 2020

Explanation:

1. Real Gross Domestic Product showed increment at the rate of 1.9% annually by the end of 3rd quarter of 2019. This estimate was released by Bureau of economic analysis. They also had estimated that Real GDP was increased by approximately 2.0% when 2nd quarter of 2019 ended.

Factors that contributed the increase in real GDP by the end of 3rd quarter included expenditures and consumption of the common people for personal use, expenditure of federal government along with local and state governments, investments in fixed residential assets, and also exports.

2. International Monetary Fund estimated and projected a slower growth rate for United States in 2019 and 2020 and revised the growth rate as downward of 0.3% for both 2019 and 2020. This shows us that GDP will now grow at the rate of 7% and 7.2%, which reflects a very weak outlook for domestic demand, weaker than expected. Global trade tension poses a threat to the economic outlook.