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Just curious?

2007-03-18 18:05:53 · 1 answers · asked by The man who wants answers! 2 in Politics & Government Government

1 answers

It cannot. This would require a negative GDP for 3 quarters and GDP cannot mathematically be negative.

I imagine you really mean how can 4th quarter GDP growth be greater than annual GDP growth.

When growth figures are given, in order to put them into perspective they are annualised. This means the number given is actually the growth that would occur if this rate continued for a whole year. Hence when we hear of GDP growth of 5% for quarter 4 this does not mean an annual rate of 20% which is huge and would be unsustainable. Rather it means if Q4 growth rates continued for a whole year the result would be 5%.

2007-03-22 09:08:01 · answer #1 · answered by Sageandscholar 7 · 0 0

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