GDP Growth Rate Overview

GDP Growth Rate

While the average GDP growth rate over the last 5 years has improved markedly over the prior 5 year period, it pales in comparison to the lofty rates achieved in the 1990’s and the early 2000’s. The GDP growth rate for the time period 2010 through 2014 is 2.08%. On an absolute comparison basis, the numbers don’t seem that far off from historical levels. On a relative percentage basis, the comparison is woeful. The current GDP growth rate is down about 22% from the ‘00 through ’04 average growth rate of 2.70%. It is down about 50% from the ‘95 to ’99 average growth rate of 4.04%. Drops of this magnitude result in less GDP, lower incomes and fewer jobs. Let’s hope that whoever wins the election can effect positive change to pump the growth rate back up in the 3%+ range. A rising tide indeed lifts all boats.

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