What This Chart Shows

This chart displays the quarterly growth rate of U.S. real GDP, measured as the percent change from the previous quarter at a seasonally adjusted annual rate (SAAR). It captures how fast the U.S. economy is expanding or contracting.

The chart highlights economic cycles, recessions, recoveries, and long‑term growth trends.

Why GDP Growth Rate Matters

GDP growth is one of the most important measures of economic performance. It is shaped by:

  • Consumer spending
  • Business investment
  • Government spending
  • Exports and imports
  • Inventory cycles
  • Monetary and fiscal policy

Because GDP growth reflects the overall health of the economy, it is closely watched by policymakers, investors, and businesses.

Key Insights

  • Negative GDP growth for two consecutive quarters often signals recession.
  • Growth tends to slow before recessions and accelerate during recoveries.
  • Consumer spending is the largest driver of GDP.
  • Policy changes (interest rates, stimulus, taxes) can significantly impact growth.
  • The U.S. economy experiences long‑term growth despite short‑term volatility.

Source

U.S. Bureau of Economic Analysis (via FRED) Series ID: A191RL1Q225SBEA

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