quarterly economic growth at a seasonally adjusted annual rate.
annualized quarterly data
data should be seasonally adjusted to eliminate the possible seasonal influences.
impact of data revisions
acurrency and completeness are often sacreficed
constant rate of change
= distances = = rates of change
a strait line represents a constant rate of change
the appropriate basis for calculating economic growth
GDP vs GNI
GDP is geographic
GNI measures the total production or income of the residents of a country on a world wide basis
the difference is net primary income of the rest of the world
GNI is better measure of economic welfare
terms of trade
ratio between export prices and import prices
when export prices rise rapidly in relation to import prices real GDP tends to under estimate economic growth
when import prices are rising rapidly in relation to export prices real GDP tends to over estimate growth
further technical issues relating to growth rates
growth is an exponential phenomenon
annualized change is with you take the growth of a period shorter than one year and assume it will carry on exactly the same for the rest of the year.
between to successive periods