Good news! US economy surpasses pre-pandemic size with 6.5% Q2 growth https://www.msn.com/en-us/money/mar...ith-65percent-q2-growth/ar-AAMHBfk?li=BBnb7Kz U.S. economy grew at a solid 6.5% annual rate last quarter in another sign that the nation has achieved a sustained recovery from the pandemic recession. The total size of the economy has now surpassed its pre-pandemic level. Thursday’s report from the Commerce Department estimated that the nation’s gross domestic product — its total output of goods and services — accelerated in the April-June quarter from an already robust 6.3% annual growth rate in the first quarter of the year.
Slower, sustained growth is OK as well. Rising inflation off-sets the 6.5%, I'd be satisfied to see 2-3% real GDP growth with lower inflation. IMO, slower sustained growth is better for the majority than boom and bust cycles.
You didn't read the 'pre-pandemic' part? It was right in the title - you didn't even need to read the article.
Because the latest reports on inflation are at around 5%. That would mean actual or real GDP growth of 1.5% or so. A little inflation is OK...because it indicates overall growth...but I'd like to see both GDP growth and inflation a little lower.
Rebound to pre-pandemic levels. To be expected after the stupid shutdowns ended. What is it that you don't understand?
Well, I believe both inflation and rate of growth to come down to normal levels. Lot of products are still in short supply, like lumber which causes prices to go up, but the situation is getting back to normal.
I may be wrong. I just looked at BEA data that says the 6.5% growth is in "real" dollars, which I believe accounts for inflation. Sorry 'bout that. I need to do more research...but I think the principle is valid...too rapid growth, will lead to two directions...inflation and boom and bust cycles.
