Is that real growth? Or did it just keep up with inflation?
This was the old Jimmah Carter trick.
GDP growth 5%—inflation rate 10%—real growth rate negative five percent.
They didn’t fool anybody with that garbage.
That’s the big question. If it is the total dollar amount of goods and services produced then inflation is a large factor. If so, these numbers are lower than inflation and we actually have a decrease in economic output.
“Is that real growth? Or did it just keep up with inflation?”
In three weeks the number will quietly be adjusted to 1.2%.
It’s adjusted for inflation. All the GDP reports are adjusted for inflation
From the press release. It’s real GDP. adjusted.
Real gross domestic product (GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.3 percent.
The GDP estimate released today is based on source data that are incomplete or subject to further revision by the source agency (refer to “Source Data for the Advance Estimate” on page 4). The “second” estimate for the fourth quarter, based on more complete data, will be released on February 24, 2022
All the government spending is counted as part of GDP.