Real Gross Domestic Product

1655 WordsJan 25, 20187 Pages
Real Gross Domestic Product (GDP) Real GDP increased annually at a rate of 2.6 percent in the fourth quarter of 2013. Although it decelerated from a 4.1percent GDP growth increase in the third quarter, in my findings real people were helping our economic growth in the fourth quarter. To be specific, the real GDP increase in this final quarter beat BEA estimate (a 2.4 percent increase) by 20 basis points. This is reflected by a larger than previously estimated consumption expenditure (3.3 percent versus an estimate of 2.6 percent). However, it is offset by a smaller-than-estimated private investment in intellectual property products (4.0 percent) and residential fixed investment (negative 7.9 percent). There are positive contributions to this increase such as: personal consumption expenditures up 3.3 percent (higher than last quarter’s 2 percent), gross private domestic investment up 2.5 percent, and exports up 9.5 percent. They are offset by negative contributions such as government spending down 5.2 percent. Imports, which are a subtraction in the calculation of GDP, were up 1.5 percent. The price index for gross domestic purchases, which is the measurement of prices paid by US residents, increased at the rate of 1.5 percent in the fourth quarter 2013 as compared to 1.8 percent increase in the third quarter last year. If food and energy prices are excluded, the price index increased at 1.8 percent in the fourth quarter 2013 as compared to an increase of 1.5 percent in the
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