Economy
September 30, 2016
Gross Domestic Product for Q2 2016 - Third Estimate
Written by Peter Wright
The annualized GDP growth rate in the third estimate of the second quarter of 2016 was 1.41 percent which was slightly above the consensus expectation of 1.3 percent and an improvement from the first estimate which was 1.2 percent. GDP is measured and reported in chained 2009 dollars and in the third estimate of Q2 was $16.583 trillion. The growth calculation is misleading because it takes the quarter over quarter change and multiplies by 4 to get an annualized rate. This makes the high quarters higher and the low quarters lower. Figure 1 clearly shows this effect.
