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28 July 2017
The economy
performed slightly better over the past three years than previously believed,
thanks in part to a boost from how the government accounts for gasoline sales.
Despite the improvement, the current recovery is still the weakest in more than
six decades. The Total Investment & Insurance
Solutions
The Commerce Department is boosting growth in two of the past
three years, helped by a new approach to accounting for gasoline sales at big
chains stores such as Wal-Mart.
The new estimate is the result of the annual update the
department's Bureau of Economic Analysis conducts to revise the GDP figures
over the past years to reflect revisions to the underlying data. It also
reflects improvements the BEA implements in how it tracks GDP, the nation's
total output of goods and services. The Total Investment & Insurance
Solutions
The revisions made minor changes to economic history, putting
growth at 2.6 percent in 2014, up from 2.4 percent. Growth in 2015 is now 2.9
percent, up from 2.6 percent. And it was 1.5 percent in 2016, the only year to
see a small reduction from the previous estimate of 1.6 percent.
One of the biggest factors contributing to the changes was a
decision by the BEA to separate out gasoline sales at big-box retailers like
Wal-Mart. Gasoline sales had been weighing the sales of other items in the
calculations because of the big fall in gas prices during the period.
All of the changes boosted growth a slight 0.1 percentage point
over the three-year period. And it also lifted growth by the same 0.1
percentage point over the eight-year expansion, now the third longest in U.S. history.
Average GDP growth during the period through the end of last year is now at 2.2
percent, up from 2.1 percent previously. The Total Investment
& Insurance Solutions
However, that growth rate is still well below the previous 10
expansions going back to 1949.
President Donald Trump often criticized this slowdown during last
year's presidential campaign, saying his economic program of tax cuts,
deregulation and infrastructure spending would double growth. His budget is
based on forecasts that growth will rise steadily and hit sustained rates of 3
percent by 2021.The Total Investment & Insurance
Solutions
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