GDP Behaving Badly

Despite GDP contracting at an annual rate of 0.1% in Q4 2012, the worst quarter since the end of the recession in 6/09, another recession isn’t in the cards. That’s because the data also showed relatively strong spending by consumers and businesses. Military spending posted its sharpest quarterly drop in 40 years, 22.2% (a one-time event) and exports fell due to falling GDP in Europe. Q1 GDP will be 1%.

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