August 1, 2016

Economic recovery weakest since 1949

Wall Street Journal

Even seven years after the recession ended, the current stretch of economic gains has yielded less growth than much shorter business cycles.

In terms of average annual growth, the pace of this expansion has been by far the weakest of any since 1949. (And for which we have quarterly data.) The economy has grown at a 2.1% annual rate since the U.S. recovery began in mid-2009, according to gross-domestic-product data the Commerce Department released Friday.

The prior expansion, from 2001 through 2007, was the only other business cycle of the past 11 when the economy didn’t grow at least 3% a year, on average.

Total growth this expansion ranks just 8th of the past 11 cycles. The U.S. economy, at the end of June, was 15.5% larger than it was when the recession ended in 2009.

1 comment:

greg gerritt said...

The slow growth rate is no surprise. Check out the work of Robert Gordoin. Economic growth is NEVER coming back and our current obsession with growth is part of why the economy is screwing the 99%. You can also check out the blog for more perspective