GDP
Real GDP rises from 1,000 to 1,010 units between quarters, a 1% quarter-on-quarter increase. Annualised growth is (1.01⁴ − 1) × 100 ≈ 4.06%. This does not claim that output actually rose 4.06% during that single quarter.
Nominal, real and per-capita measures
Nominal output uses current prices, real output adjusts for price changes, and per-capita GDP divides the level by population. These answer different questions. GDP is neither a complete welfare measure nor the combined revenue of all companies.
Release conventions
Compare quarter-on-quarter, year-on-year and annualised changes only on a consistent basis. Early estimates use incomplete information; later releases can revise both the current and earlier periods. Data vintages matter for backtesting.
Growth composition and FX
Examine consumption, investment, inventories and trade. Inventory-led growth differs from broad final demand. Rate expectations, inflation and the other economy matter; a high GDP reading alone does not determine an exchange rate.
Primary source checked 11 October 2026: www.bea.gov.
FAQ
Is 4% annualised comparable with 4% year-on-year?
Not without matching the series and convention. Annualisation extrapolates a shorter period's pace; year-on-year compares levels a year apart.
Why is GDP revised?
Agencies receive fuller information and update estimates or methodology; the first release is not always the final value.
