US real GDP grew at a 3.2 annual rate in Q4 2013. This slideshow presents data on both total real GPD and per capita real GDP

1. Economics for your Classroom from
Ed Dolan’s Econ Blog
US GDP Grows 3.2 Percent in
Q4 2013, Plus a Look at
GDP Per Capita
Posted January 30, 2014
Terms of Use: These slides are provided under Creative Commons License Attribution—Share Alike 3.0 . You are free
to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like
the slides, you may also want to take a look at my textbook, Introduction to Economics, from BVT Publishing.

2. US GDP Registers 3.2 Percent Growth in Q4 2013
 The advance estimate from the
Bureau of Economic Analysis
showed US GDP growing at a 3.2
percent annual rate in the fourth
quarter of 2013
 That brought growth for the full year
since Dec. 2012 to 2.74 percent, just
slightly below the 2.77 percent for
2010, which was the strongest year
of the recovery
January 30, 2014 Ed Dolan’s Econ Blog

3. Phases of the Business Cycle
 According to standard business cycle
terminology, the recession phase of the
business cycle is the downward
movement of GDP from its previous
peak
 The recovery phase is the upward
movement from the trough (low point)
of the recession and continues until
GDP again reaches its previous peak.
 Once GDP moves above its previous
peak, the expansion phase begins.
 The latest data show that the expansion
is continuing. Real GDP is now 6.5
percent above the previous peak
January 30, 2014 Ed Dolan’s Econ Blog

4. Sources of Growth by Sector
 Most of the Q4 growth came from stronger
consumption, which contributed 2.26
percentage points
 Investment contributed a weak 0.56
percentage points, well below the recent
average
 Exports grew very strongly and imports
barely increased
 The government sector made an unusually
large negative contribution to growth, due in
part to the partial government shutdown
Contribution by sector to the
3.2% GDP growth in Q4 2013
Note: Imports are recorded in the national
accounts with a negative sign, so the -0.15
percentage points shown here represents an
increase in imports
January 30, 2014 Ed Dolan’s Econ Blog

5. Export Growth Resumes after a Pause
 Exports showed renewed strength in Q4
2013, despite weaknesses in many U.S.
trading partners
 Exports had played a big role in early
stages of the recovery, but had entered
a slump in late 2012 and early 2013
January 30, 2014 Ed Dolan’s Econ Blog

6. Tracking Real GDP Per Capita
 All of the data shown so far are for total
real GDP. If we are interested in a
country’s standard of living, it is also
useful to track real GDP per capita
 The US population is growing about 0.7
percent per year, so GDP per capita
lags behind total GDP
 This chart reports both series as index
numbers where Q4 2007 (the peak of
the previous cycle) equals 100
 Whereas total real GDP is 6.5% above
its previous peak, real GDP per capita
is less than 2% above its previous peak
January 30, 2014 Ed Dolan’s Econ Blog

7. International Comparisons: Total Real GDP
Measured by total real GDP, the U.S. economy is the second-fastest growing of the G7,
behind Canada and followed by Germany, Japan, and France
January 30, 2014 Ed Dolan’s Econ Blog

8. International Comparisons: Real GDP Per Capita
The rankings look different when we switch to per-capita real GDP. Germany and Japan,
where population is shrinking, move up in the rankings. Countries like Canada, the US, and
France where population growth is still strong, move down.
January 30, 2014 Ed Dolan’s Econ Blog

9. For more slideshows, follow Ed Dolan’s Econ Blog
Follow @DolanEcon on Twitter
Click here to learn more about Ed Dolan’s Econ texts
or visit www.bvtpublishing.com

10. For more slideshows, follow Ed Dolan’s Econ Blog
Follow @DolanEcon on Twitter
Click here to learn more about Ed Dolan’s Econ texts
or visit www.bvtpublishing.com