Personal consumption expenditures (PCE), federal government spending, state and local government spending, residential fixed investment, and exports all contributed to the increase in real GDP in the fourth quarter, which was partially offset by negative contributions from private inventory investment and nonresidential fixed investment. Imports, which are deducted from GDP calculations, declined (table 2).
The fourth quarter’s real GDP growth was the same as the third. A drop in imports, an increase in government spending, and a lesser drop in nonresidential investment were countered by a greater drop in private inventory investment and a slowdown in PCE in the fourth quarter.
In the fourth quarter, current dollar GDP climbed by 3.6 percent, or $191.7 billion, to $21.73 trillion. GDP climbed by 3.8 percent, or $202.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases grew 1.5 percent, compared to 1.4 percent in the third quarter (table 4). The PCE price index climbed by 1.6 percent, compared to 1.5 percent previously. The PCE price index grew 1.3 percent excluding food and energy expenses, compared to a 2.1 percent increase overall.
In the fourth quarter, current-dollar personal income climbed by $148.7 billion, compared to $162.6 billion in the third quarter. Decelerations in proprietors’ income, personal current transfer receipts, and personal dividend income were somewhat offset by a smaller fall in personal interest income and an acceleration in compensation, resulting in the lower increase (table 8).
In the fourth quarter, disposable personal income climbed by $127.4 billion, or 3.1 percent, compared to $179.5 billion, or 4.5 percent, in the third quarter. Real disposable personal income climbed by 1.5 percent, compared to 2.9 percent in the previous quarter.
In the fourth quarter, personal savings totaled $1.29 trillion, down from $1.30 trillion in the third quarter. In the fourth quarter, the personal saving rate personal savings as a proportion of disposable personal income was 7.7%, down from 7.8% in the third quarter.
In 2019, real GDP increased by 2.3 percent (from the previous year’s annual level to the current year’s annual level), compared to 2.9 percent in 2018. (table 1).
PCE, nonresidential fixed investment, federal government expenditure, state and local government spending, and private inventory investment all contributed to the increase in real GDP in 2019, which was partially offset by negative contributions from residential fixed investment. Imports have risen (table 2).
The slowdown in real GDP in 2019 compared to 2018 was mostly due to slower nonresidential fixed investment and PCE, as well as a drop in exports, which were partially offset by faster state and local government spending. Imports grew at a slower pace in 2019 than in 2018.
GDP in current dollars climbed 4.1 percent, or $848.8 billion, to $21.43 trillion in 2019, compared to 5.4 percent, or $1,060.8 billion, in 2018. (table 1 and table 3).
In 2019, the price index for gross domestic purchases climbed by 1.6 percent, compared to 2.4 percent in 2018. (table 4). The PCE price index climbed by 1.4 percent, compared to a 2.1 percent increase in the previous quarter. The PCE price index grew 1.6 percent excluding food and energy expenses, compared to 1.9 percent overall (table 4).
Real GDP increased by 2.3 percent from the fourth quarter of 2018 to the fourth quarter of 2019. This is compared to a 2.5 percent gain in 2018. The price index for gross domestic purchases grew 1.5 percent in 2019, as assessed from the fourth quarter of 2018 to the fourth quarter of 2019. This is compared to a 2.2 percent gain in 2018. The PCE price index climbed by 1.5 percent, compared to 1.9 percent in the previous quarter. The PCE price index grew 1.6 percent excluding food and energy, compared to 1.9 percent overall (table 6).
A Technical Note that is issued with the press release on BEA’s Web site contains information on the source data and important assumptions utilized for unavailable source data in the advance estimate. Each version comes with a thorough “Key Source Data and Assumptions” file. See the “Additional Information” section below for more information on GDP updates.
What was the GDP growth rate in 2019?
Consumer spending and corporate investment helped loosen the pandemic’s tight grip last year, and the US economy closed the year on a high note.
The Commerce Department stated Thursday that gross domestic product, the broadest measure of the nation’s production of goods and services, increased by 1.7 percent in the last three months of 2021 after accounting for inflation. The economy rose by 5.7 percent for the entire year, the highest yearly rise since 1984.
What was the growth rate of the economy in 2020?
The real U.S. GDP climbed by 2.1 percent in the third quarter of 2021 after the economic effects of the coronavirus (COVID-19) epidemic. When compared to the 33.8 percent growth in the third quarter of 2020, when the world was beginning to recover from COVID-19, this is a more normal increase.
In 2019, what was the GDP percentage?
Positive contributions from PCE, exports, residential fixed investment, federal government spending, and state and local government spending offset negative contributions from private inventory investment and nonresidential fixed investment in the fourth quarter, resulting in an increase in real GDP. Imports, which are deducted from GDP calculations, declined (table 2).
The fourth quarter’s real GDP growth was the same as the third. A drop in imports and an increase in government spending were offset in the fourth quarter by a bigger drop in private inventory investment and a slowdown in PCE.
In the fourth quarter, real gross domestic income (GDI) climbed by 2.6 percent, compared to 1.2 percent in the third quarter. In the fourth quarter, the average of real GDP and real GDI, a supplemental measure of U.S. economic activity that weights GDP and GDI equally, grew 2.4 percent, compared to 1.7 percent in the third quarter (table 1).
In the fourth quarter, current dollar GDP climbed by 3.5 percent, or $186.6 billion, to $21.73 trillion. Current-dollar GDP climbed by 3.8 percent, or $202.2 billion, in the third quarter (tables 1 and 3).
In the fourth quarter, the price index for gross domestic purchases climbed by 1.4 percent, the same as in the third quarter (table 4). The PCE price index climbed by 1.4 percent, compared to a 1.5 percent increase in the previous quarter. The PCE price index grew 1.3 percent excluding food and energy expenses, compared to a 2.1 percent increase overall.
The “Key Underlying Data and Assumptions” file on BEA’s website has more detail on the source data that underpins the estimates.
The fourth-quarter real GDP growth rate was unchanged from the second estimate in the third estimate. The PCE, residential investment, and state and local government spending have all been increased. Downward revisions to federal government spending and nonresidential fixed investment, as well as an upward revision to imports, counterbalance these upward revisions. See the Technical Note for further information. See the “Additional Information” section below for more information on GDP updates.
PCE, nonresidential fixed investment, federal government expenditure, state and local government spending, and private inventory investment all contributed to the increase in real GDP in 2019, which was partially offset by a negative contribution from residential fixed investment. Imports have risen (table 2).
The slowdown in real GDP in 2019 compared to 2018 was mostly due to slower nonresidential fixed investment, exports, and PCE, which were partially offset by faster state and local government spending and federal government spending. Imports grew at a slower pace in 2019 than in 2018.
GDP in current dollars climbed 4.1 percent, or $847.5 billion, to $21.43 trillion in 2019, compared to 5.4 percent, or $1,060.8 billion, in 2018. (table 1 and table 3).
In 2019, real GDP increased by 1.9 percent, compared to 2.5 percent in 2018. (table 1).
In 2019, the price index for gross domestic purchases climbed by 1.5 percent, compared to 2.4 percent in 2018. (table 4). The PCE price index climbed by 1.4 percent, compared to a 2.1 percent increase in the previous quarter. The PCE price index grew 1.6 percent excluding food and energy expenses, compared to 1.9 percent overall (table 4).
Real GDP increased by 2.3 percent from the fourth quarter of 2018 to the fourth quarter of 2019. This is compared to a 2.5 percent gain in 2018. Real GDI grew 2.0 percent in 2019, as measured from the fourth quarter of 2018 to the fourth quarter of 2019. This is compared to a 2.3 percent gain in 2018. (table 6).
From the fourth quarter of 2018 to the fourth quarter of 2019, the price index for gross domestic purchases climbed by 1.4 percent. This is compared to a 2.2 percent gain in 2018. The PCE price index climbed by 1.4 percent, compared to 1.9 percent in the previous quarter. The PCE price index grew 1.6 percent excluding food and energy, compared to 1.9 percent overall (table 6).
In the fourth quarter, profits from current production (business profits adjusted for inventory valuation and capital consumption) climbed $53.0 billion, compared to a decrease of $4.7 billion in the third quarter (table 10).
Domestic financial corporation profits grew $0.7 billion in the fourth quarter, compared to a $4.7 billion loss in the third quarter. Domestic nonfinancial firms’ profits grew $53.7 billion, compared to a $5.5 billion fall in financial corporations’ profits. Profits in the rest of the globe fell $1.4 billion, compared to a $5.5 billion increase in the United States. Receipts climbed by $3.4 billion in the fourth quarter, while payments increased by $4.8 billion.
Profits from current production remained constant in 2019, after increasing by $68.7 billion in 2018. Domestic financial businesses saw a $7.1 billion gain in profits, compared to an increase of $11.1 billion. Domestic nonfinancial firms’ profits fell $36.4 billion, compared to a $10.0 billion increase in financial corporations’ profits. Profits in the rest of the world climbed by $29.3 billion, compared to a $47.6 billion increase in the United States.
What was the debt of the United States in 2019?
The Treasury Department said this week that the United States’ total national debt had topped $30 trillion for the first time in history, an amount equal to roughly 130 percent of the country’s annual economic production, or GDP. The staggering sum places the United States among the world’s most indebted countries.
The federal debt has been huge and rising for decades, but the government’s response to the coronavirus outbreak, which included massive cash infusions into the U.S. economy, increased its expansion significantly.
Prior to the pandemic, the national debt was $22.7 trillion at the end of 2019. It had climbed by another $5 trillion to $27.7 trillion a year later. Since then, the country has added over $2 trillion to its debt.
While the amount of $30 trillion has no meaning in and of itself, it may serve to draw attention to what some regard as a big worry for the country’s future health.
“Reaching $30 trillion in debt is a stark reminder of how high our debt is and how much we’ve been borrowing,” said Marc Goldwein, senior vice president and senior policy director for the Committee for a Responsible Federal Budget.
What was the growth rate of the economy from 2019 to 2020?
The rise in exports was mostly due to a rise in goods (led by industrial supplies and materials). Nonresidential fixed investment increased as a result of increases in all components, headed by equipment. Spending on services (headed by health care) accounted for more than half of the growth in PCE; spending on products fell (led by food and beverages). The rise in residential fixed investment was mostly due to new single-family house construction. The rise in private inventory investment was principally driven by increases in manufacturing and wholesale trade, which were partially offset by a drop in retail commerce.
In the fourth quarter, current dollar GDP climbed by 6.0 percent on an annual basis, or $309.2 billion, to $21.48 trillion. GDP climbed by 38.3 percent, or $1.65 trillion, in the third quarter (tables 1 and 3). The Key Source and Data Assumptions file on BEA’s website has more information on the source data that underpins the estimates.
In the fourth quarter, the price index for gross domestic purchases grew 1.7 percent, compared to 3.3 percent in the third quarter (table 4). The PCE price index rose 1.5 percent in the fourth quarter, compared to 3.7 percent in the previous quarter. The PCE price index climbed 1.4 percent excluding food and energy expenses, compared to 3.4 percent overall.
In the fourth quarter, current-dollar personal income fell $339.7 billion, compared to $541.5 billion in the third quarter. Personal current transfer receipts (notably, government social benefits related to the winding down of CARES Act pandemic relief programs) and proprietors’ income, which were partly offset by increases in compensation and personal income receipts on assets, more than offset the decrease in personal income (table 8).
In the fourth quarter, disposable personal income fell $372.5 billion, or 8.1 percent, compared to $638.9 billion, or 13.2 percent, in the third quarter. Real disposable personal income fell by 9.5 percent, compared to 16.3 percent in the previous quarter.
In the fourth quarter, personal savings totaled $2.33 trillion, compared to $2.83 trillion in the third quarter. In the fourth quarter, the personal saving rate (savings as a proportion of disposable personal income) was 13.4 percent, down from 16.0 percent in the third quarter. “Effects of Selected Federal Pandemic Response Programs on Personal Income” provides more details on the elements that influence quarterly personal income and savings.
In 2020, real GDP fell 3.5 percent (from the 2019 annual level to the 2020 annual level), compared to a 2.2 percent growth in 2019. (table 1).
PCE, exports, private inventory investment, nonresidential fixed investment, and state and local government decreased real GDP in 2020, partially offset by increases in federal government spending and residential fixed investment. Imports are down (table 2).
A drop in services more than compensated for the decrease in PCE in 2020. (led by food services and accommodations, health care, and recreation services). The drop in exports was due to a drop in both services (driven by travel) and goods (mainly non-automotive capital goods). Private inventory investment fell as a result of broad losses in retail trade (mostly auto dealers) and wholesale trade (mainly durable goods industries). Structures (dominated by mining exploration, shafts, and wells) and equipment (headed by transportation equipment) decreased in nonresidential fixed investment, which was partly offset by an increase in intellectual property products (more than accounted for by software). The drop in state and local government spending corresponded to a drop in consumer spending (led by compensation).
The increase in federal spending was due to an increase in non-defense consumer spending (led by an increase in purchases of intermediate services that supported the processing and administration of Paycheck Protection Program loan applications by banks on behalf of the federal government). Increases in upgrades, as well as brokers’ commissions and other ownership transfer costs, accounted for the majority of the increase in residential fixed investment.
In 2020, current-dollar GDP fell 2.3 percent, or $500.6 billion, to $20.93 trillion, compared to a 4.0 percent, or $821.3 billion, growth in 2019. (tables 1 and 3).
In 2020, the price index for gross domestic purchases climbed by 1.2 percent, compared to 1.6 percent in 2019. (table 4). In 2020, the PCE price index climbed 1.2 percent, compared to 1.5 percent in 2019. The PCE price index grew 1.4 percent excluding food and energy expenses, compared to 1.7 percent overall.
Real GDP fell 2.5 percent from the fourth quarter of 2019 to the fourth quarter of 2020, according to data (table 6). In comparison, in 2019 there was a 2.3 percent gain.
The price index for gross domestic purchases grew 1.3 percent in 2020, as assessed from the fourth quarter of 2019 to the fourth quarter of 2020. In comparison, in 2019 there was a 1.4 percent gain. The PCE price index climbed by 1.2 percent, compared to a 1.5 percent increase in the previous quarter. The PCE price index grew 1.4 percent excluding food and energy, compared to 1.6 percent overall.
A Technical Note that is issued with the news release on BEA’s website contains information on the source data and important assumptions utilized for unavailable source data in the advance estimate. For each release, a thorough Key Source Data and Assumptions file is also available. See the “Additional Information” section below for more information on GDP updates.
What was the Gross Domestic Product in 2018 and 2019?
The government lowered the economic growth forecast for 2019-20 to 4% from 4.2 percent previously predicted, owing to decline in secondary sectors such as manufacturing and construction. In revised national account figures, the National Statistical Office stated, “Real GDP or GDP at constant (2011-12) prices for the years 2019-20 and 2018-19 stands at Rs 145.69 trillion and Rs 140.03 trillion, respectively, showing a rise of 4.0 percent in 2019-20 and 6.5 percent in 2018-19.”
What will the US GDP be in 2021?
In addition to updated fourth-quarter projections, today’s announcement includes revised third-quarter 2021 wages and salaries, personal taxes, and government social insurance contributions, all based on new data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Wages and wages climbed by $306.8 billion in the third quarter, up $27.7 billion from the previous estimate. With the addition of this new statistics, real gross domestic income is now anticipated to have climbed 6.4 percent in the third quarter, a 0.6 percentage point gain over the prior estimate.
GDP for 2021
In 2021, real GDP climbed by 5.7 percent, unchanged from the previous estimate (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major components of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
PCE increased as both products and services increased in value. “Other” nondurable items (including games and toys as well as medications), apparel and footwear, and recreational goods and automobiles were the major contributors within goods. Food services and accommodations, as well as health care, were the most significant contributors to services. Increases in equipment (dominated by information processing equipment) and intellectual property items (driven by software as well as research and development) partially offset a reduction in structures in nonresidential fixed investment (widespread across most categories). The rise in exports was due to an increase in products (mostly non-automotive capital goods), which was somewhat offset by a drop in services (led by travel as well as royalties and license fees). The increase in residential fixed investment was primarily due to the development of new single-family homes. An increase in wholesale commerce led to an increase in private inventory investment (mainly in durable goods industries).
Current-dollar GDP climbed 10.1 percent (updated), or $2.10 trillion, in 2021 to a level of $23.00 trillion, in contrast to a loss of 2.2 percent, or $478.9 billion, in 2020 (tables 1 and 3). (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed 3.9 percent, which was unchanged from the previous forecast, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, which was unchanged from the previous estimate, compared to a 1.2 percent gain. With food and energy prices excluded, the PCE price index increased 3.3 percent, unchanged from the previous estimate, compared to 1.4 percent.
Real GDP grew 5.6 (revised) percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a fall of 2.3 percent from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases climbed 5.6 percent (revised), compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index grew 5.5 percent, unchanged from the previous estimate, versus a 1.2 percent increase. The PCE price index grew 4.6 percent excluding food and energy, which was unchanged from the previous estimate, compared to 1.4 percent.
In 2021, how much did the GDP grow?
As the economy continues to recover from the ravages of the COVID-19 pandemic, US GDP growth surged in the fourth quarter, expanding at a 6.9% annual rate, up from the preceding four quarters’ rate of growth. Increased inventory investment and increased service consumption accounted for all of GDP growth in the fourth quarter. Real GDP increased by 5.5 percent in the first four quarters of 2021, the fastest rate since 1984.
In the fourth quarter, the economy was most likely producing at or near its full potential. The economy was still trending 1.4 percent below pre-pandemic levels. Even if the pandemic had not occurred, the economy is unlikely to have continued to develop at the same rate in 2020 and 2021 as it had in previous years. Prior to the pandemic, forecasters projected a slowdown since the economy was close to or at maximum employment, making it improbable that job gains would continue at the same rate. Furthermore, because of higher fatalities and limited immigration, which resulted in a smaller-than-expected labor force, and low investment, which resulted in a smaller-than-expected capital stock, the pandemic itself has certainly diminished potential.
Even while the economy was near to where it would have been had the epidemic and the government’s response not occurred, the economy’s makeup was drastically changed. On the supply side, employment remained low (because to low labor force participation), but this was compensated for by longer average hours and improved productivity. Final expenditures were biased towards commodities and residential investment, rather than services, business fixed investment, inventories, and net exports, on the demand side. In the fourth quarter, the demand side began to take on a more regular composition, but it remained highly skewed.
Is the US economy growing presently, and if so, how fast?
Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both products and services contributed to the increase in exports. Consumer products, industrial supplies and materials, and foods, feeds, and beverages were the biggest contributions to the growth in goods exports. Travel was the driving force behind the increase in service exports. The rise in PCE was mostly due to an increase in services, with health care, recreation, and transportation accounting for the majority of the increase. The increase in nonresidential fixed investment was mostly due to a rise in intellectual property items, which was partially offset by a drop in structures.
The reduction in federal spending was mostly due to lower defense spending on intermediate goods and services. State and local government spending fell as a result of lower consumption (driven by state and local government employee remuneration, particularly education) and gross investment (led by new educational structures). The rise in imports was mostly due to a rise in goods (led by non-food and non-automotive consumer goods, as well as capital goods).
After gaining 2.3 percent in the third quarter, real GDP increased by 6.9% in the fourth quarter. The fourth-quarter increase in real GDP was primarily due to an increase in exports, as well as increases in private inventory investment and PCE, as well as smaller decreases in residential fixed investment and federal government spending, which were partially offset by a decrease in state and local government spending. Imports have increased.
In the fourth quarter, current dollar GDP climbed 14.3% on an annual basis, or $790.1 billion, to $23.99 trillion. GDP climbed by 8.4%, or $461.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases climbed 6.9%, compared to 5.6 percent in the third quarter (table 4). The PCE price index climbed by 6.5 percent, compared to a 5.3 percent gain in the previous quarter. The PCE price index grew 4.9 percent excluding food and energy expenses, compared to 4.6 percent overall.
Personal Income
In the fourth quarter, current-dollar personal income climbed by $106.3 billion, compared to $127.9 billion in the third quarter. Increases in compensation (driven by private earnings and salaries), personal income receipts on assets, and rental income partially offset a decline in personal current transfer receipts (particularly, government social assistance) (table 8). Following the end of pandemic-related unemployment programs, the fall in government social benefits was more than offset by a decrease in unemployment insurance.
In the fourth quarter, disposable personal income grew $14.1 billion, or 0.3 percent, compared to $36.7 billion, or 0.8 percent, in the third quarter. Real disposable personal income fell 5.8%, compared to a 4.3 percent drop in the previous quarter.
In the fourth quarter, personal savings totaled $1.34 trillion, compared to $1.72 trillion in the third quarter. In the fourth quarter, the personal saving rate (savings as a percentage of disposable personal income) was 7.4 percent, down from 9.5 percent in the third quarter.
In 2021, real GDP climbed 5.7 percent (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major subcomponents of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
In 2021, current-dollar GDP expanded by 10.0 percent, or $2.10 trillion, to $22.99 trillion, compared to 2.2 percent, or $478.9 billion, in 2020. (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed by 3.9 percent, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, compared to 1.2 percent in the previous quarter. The PCE price index climbed 3.3 percent excluding food and energy expenses, compared to 1.4 percent overall.
Real GDP rose 5.5 percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a 2.3 percent fall from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases grew 5.5 percent, compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index climbed by 5.5 percent, compared to 1.2 percent for the year. The PCE price index increased 4.6 percent excluding food and energy, compared to 1.4 percent overall.
Source Data for the Advance Estimate
A Technical Note that is issued with the news release on BEA’s website contains information on the source data and major assumptions utilized in the advance estimate. Each version comes with a thorough “Key Source Data and Assumptions” file. Refer to the “Additional Details” section below for information on GDP updates.
In the fourth quarter of 2019, what was the GDP growth rate?
20 February 2020 – According to provisional estimates, growth of real gross domestic product (GDP) in the OECD region dropped to 0.2 percent in the fourth quarter of 2019, down from 0.4 percent the previous quarter. Only the United States experienced GDP rise in the fourth quarter of 2019 among the Major Seven economies with data available (up 0.5 percent , unchanged from the previous quarter).
Following a 1.6 percent hike in consumption tax in October, GDP in Japan dropped considerably (by minus 1.6 percent), as did GDP in Italy (by minus 0.3 percent) and France (by minus 0.3 percent) (by minus 0.1 percent ).
GDP growth decreased to zero in the United Kingdom and Germany (after growth of 0.5 percent and 0.2 percent in the previous quarter, respectively), as well as in the euro area and the European Union (to 0.1 percent , from 0.3 percent in the previous quarter).
Year-on-year In the fourth quarter of 2019, OECD GDP growth fell to 1.6 percent, down from 1.7 percent the previous quarter. The United States had the highest annual GDP growth (2.3 percent) among the Major Seven economies, while Japan had the lowest annual growth (0.7 percent) (minus 0.4 percent ).
Note that the growth rates in this graph are based on data with more than one decimal place.
Quarterly National Accounts: Quarterly Growth Rates of Real GDP (Source: Quarterly National Accounts)