Gross Domestic Product (GDP) 28/4/2022

This article includes an interpretation and reading of the gross domestic product of the United States, a look at the previous data, what are the expectations for today's data, and its impact on the economy

Gross domestic product is the broadest measure of economic activity and a key indicator of an economy's health
The annual percentage change (4X quarterly change) in the gross domestic product shows and indicates economic growth as a whole
Consumption constitutes the largest part of the GDP in the United States of America and has the greatest impact on it as also the numbers can be very volatile from quarter to quarter
Higher than expected readings indicate growth in the economy and positively affected the US dollar, while readings lower than expected indicate a decline in economic growth and negatively affected the US dollar.

Expectations for today’s reading are 1.1%, and we should mention that in the latest release, the reading was 6.9%, which means that the market expects a 5.8% decline in economic growth

The American economy expanded an annualized 6.9% on quarter in the last three months of 2021, 0.1 percentage point lower than in the second estimate. Still, it remains the strongest expansion since a record growth of 33.8% in Q3 2020, with private inventories making the biggest upward contribution (5.32 percentage points vs 4.9 percentage points in the second estimate), led by motor vehicle dealers and wholesale trade industries. Downward revisions to PCE (2.5% vs 3.1% in the second estimate); exports (22.4% vs 23.6%); nonresidential fixed investment (2.9% vs 3.1%), and state and local government spending (-1.6% vs -1.4%) were partly offset by upward revisions to private inventory investment; residential fixed investment (2.2% vs 1%); and federal government spending (-4.3% vs -4.5%). Imports were also revised up (17.9% vs 17.6%). Considering full 2021, the US economy expanded 5.7%, matching earlier estimates

The statement will be issued at 3:30 pm Beirut time

Tags : USD