Gross Domestic Product or GDP q/q reflects changes in the market value of goods and services produced by the domestic economy, in the reported quarter compared to the previous quarter. The US GDP is calculated based on expenditure. Therefore, the general calculation formula is a sum of the following components:
US Bureau of Economic Analysis estimates GDP components based on surveys of retailers, manufacturers and construction companies, as well as by analyzing trade flows.
GDP is based on the monetary estimate of the value of goods, therefore it requires an adjustment for inflation. Depending on whether adjustment is applied, GDP can be real and nominal. Nominal GDP ignores inflation and deflation, that is why it is difficult to measure the indicator change based on the nominal value. Real GDP accounts for the effect of inflation and enables the seamless comparison of economic activity over long periods (for example by showing GDP change in relation to the previous year or quarter in percentage). For this purpose, the GDP deflator is included in the calculation formula.
GDP is usually used as an indicator of the national economy state and of the standard of living. Its growth is interpreted as the strengthening of economy, the decline shows weakening.
The impact of GDP on dollar quotes is associated with inflation. In turn, the relationship between GDP and inflation is very delicate. In general, GDP growth is primarily connected with an increase of domestic expenditures, which may increase inflation. This growth may spur the economy and push dollar quotes upwards. However, too much GDP growth may be dangerous, since inflationary overheating leads to economy weakening. Most economists today agree that economy can be safe and stable with 2.5% - 3.5% GDP growth per year.
The chart of the entire available history of the "United States Gross Domestic Product (GDP) q/q" macroeconomic indicator. The dashed line shows the forecast values of the economic indicator for the specified dates.
A significant deviation of a real value from a forecast one may cause a short-term strengthening or weakening of a national currency in the Forex market. The threshold values of the indicators signaling the approach of the critical state of the national (local) economy occupy a special place.
Create your own calendar of economic events. To do this, simply specify its size and display period. You can freely use this widget on your websites. In return, we ask you to keep the provided code unchanged.
The Calendar data are provided as is. The economic news release frequency and schedule, as well as the economic parameters' values may change without our knowledge. You can use the provided information, but you accept all the risks associated with making trade decisions based on the Calendar data.