It is standard in the United States to report GDP growth and other economic data as annual rates. That is not the case in other countries where it is common to use quarterly growth rates. Rather than just picking up the number as reported in other countries, reporters should convert it to an annualized rate so that their audience in the United States will understand what is being reported. (This is the point, right?) Usually, just multiplying by 4 gets you there, although for higher growth numbers, it would be best to do it right and take the number to the 4th power.

The NYT got it wrong this morning in telling readers that the UK grew 0.3 percent in the first quarter. Its annual rate of growth was 1.2 percent.

Leave your comments

Post comment as a guest

0
  • No comments found

GuideStar Exchange Gold charity navigator LERA cfc IFPTE

contact us

1611 Connecticut Ave., NW
Suite 400
Washington, DC 20009
(202) 293-5380
info@cepr.net

let's talk about it

Follow us on Twitter Like us on Facebook Follow us on Tumbler Connect with us on Linkedin Watch us on YouTube Google+ feed cepr.net rss feed