Friday, May 01, 2009
Newspaper GDP reports include imports, boosting numbers
by Larry Geller
If GDP includes imports, and imports decline because of a bad economy, then that has a positive effect on GDP. Funny how that works… I guess.
Anyway, check this out:
(Source: Weak Imports Goose GDP)
A picture is worth a thousand words. So the real decline in GDP so far this year is not the reported -6%, but if you take out the effect of imports, –12%. That’s a whole nuther number.
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