Using the Bureau of Economic Analysis (BEA), the gross domestic product (GDP) of the U.S seems to reflect a current expansion cycle
Bureau of Economic Analysis
When using the Bureau of Economic Analysis (BEA), the gross domestic product (GDP) of the U.S seems to reflect a current expansion cycle. According to Amadeo (2018) and the BEA (2018), the U.S economy has experienced a steady expansionary cycle of 2 to 3 percent growth.
The expansion has yet to result in price inflation which may indicate the potential for a peak cycle soon (Amadeo, 2018). The real GDP reached its second to last peak cycle during the third quarter of 2014. The percent peaked at a level close to 4.9 percent before experiencing a drastic contraction cycle in the fourth quarter of the same year (BEA, 2018).
The contraction, or decline, placed the U.S at a risk of recession which was frequently prophesized by news outlets; however, 2015 began with a recovery after a short trough (BEA, 2018; Amadeo, 2018). 2015 ended in a similar manner as 2014 with two steep contractions in two consecutive quarters which is often considered a full recession (BEA, 2018; Amadeo, 2018).
Dropping to lower than .5% real GDP placed the U.S economy is a dangerous position; however, the U.S economy has since recovered (BEA, 2018; Amadeo, 2018). The first quarter of 2016 established a growing trend of recovery and expansion from less than .5% GDP to 4.1% which closely resembles the peak of 2014 (BEA, 2018; Amadeo, 2018). The economy has potential to continue growth and a higher expansion cycle if current trends of producing more labor and product are continued (Amadeo, 2018).ReferencesAmadeo, K. (2018). Where are we in the current business cycle?