Jul
09

GDP = C+I+G+(X-M)

Q1 ’12 GDP was composed of personal consumption expenditures (C) totaling $11.0 trillion, private investment (I) of $2.0 trillion, government spending (G) of $3.0 trillion and net exports (E) of -$0.6 trillion. In Q2, G will be slightly lower, with E and I largely unchanged. So, overall GDP growth will be dependent on C. But C is growing by at most 1.5%, so GDP growth won’t exceed an anemic 1.9%.

Share This Post
Facebook Twitter Email

Speak Your Mind

*