Friday, 11 Jul 2025
America Age
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Font ResizerAa
America AgeAmerica Age
Search
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 America Age. All Rights Reserved.
America Age > Blog > Money > G.D.P. Report Shows Inflation Bite in Economy
Money

G.D.P. Report Shows Inflation Bite in Economy

Enspirers | Editorial Board
Share
G.D.P. Report Shows Inflation Bite in Economy
SHARE

Here’s a notable fact about the U.S. economic recovery: Inflation-adjusted output last quarter was just 1 percent below where it would have been if the pandemic had never happened.

Here’s another one: Ignoring inflation, output is 1.7 percent above where it would have been absent the coronavirus.

Those two facts help explain the confusing, contradictory nature of the late-pandemic economy. On the one hand, the recovery has been remarkably swift by both historical standards and compared with what forecasters expected when the crisis began. On the other hand, a surprising surge in inflation is preventing the economy from rebounding more quickly, or feeling more normal. And to some extent, the same forces — the remarkable levels of aid provided by the government, and the unusual nature of the pandemic recession itself — are responsible for both trends.

The chart below helps tell the story. Inflation-adjusted gross domestic product (the dark blue line) has rebounded sharply since the early months of the crisis, but has yet to return to its prepandemic trend. That might not seem too surprising; businesses have mostly reopened, but the pandemic is still restraining daily activities, at least for many people.

But the second line on the chart, in light blue, shows that the story is a bit more complicated than that. In non-inflation-adjusted terms, gross domestic product — in simple terms, everything we make and spend in a given three-month period — has surged significantly beyond its pre-Covid trend. In dollar terms, we are producing and spending as much as ever. But because of inflation, those dollars are worth less than before.

The basic story here is simple. The reopening of the economy after the initial lockdowns brought a surge in demand, which was bolstered by the trillions of dollars in aid that the federal government provided to households and businesses. But supply chain bottlenecks, labor shortages and other issues meant that businesses could not fully meet that demand. Strong demand plus limited supply is a recipe for inflation.

What happens next is less clear. If companies are able to hire more workers and pick up production, then supply will be able to meet demand. In that scenario, the dark blue line would start to look more like the light blue one — growth would be strong in terms of real output, not just nominal dollars.

But if supplies can’t rebound, then either we will continue to burn off excess demand in the form of inflation, or demand will have to fall. Either scenario would make it harder for the economy to rebound fully from the shock of the pandemic.

TAGGED:Coronavirus (2019-nCoV)Gross Domestic ProductInflation (Economics)Prices (Fares, Fees and Rates)The Washington MailUnited States Economy
Share This Article
Twitter Email Copy Link Print
Previous Article Janet Jackson clears up decades-old rumor she had a secret baby with ex-husband James DeBarge Janet Jackson clears up decades-old rumor she had a secret baby with ex-husband James DeBarge
Next Article Kanye West Announces ‘Donda 2’ Album Coming in February Kanye West Announces ‘Donda 2’ Album Coming in February

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
InstagramFollow
LinkedInFollow
MediumFollow
QuoraFollow
- Advertisement -
Ad image

Popular Posts

Britney Spears Shouts Out Sons’ Birthdays, Says She Minimize Off Individuals Taking part in Thoughts Video games

Britney Spears is shouting out her sons, wishing them a cheerful birthday month ... proper…

By Enspirers | Editorial Board

From witness stand, Kevin Spacey denies sex abuse claims

NEW YORK (AP) — Kevin Spacey testified in a New York courtroom Monday that he…

By Enspirers | Editorial Board

Blake Energetic Improvised Scene The place She Grabbed Henry Golding’s Crotch

Blake Energetic Improvised Scene of Her Grabbing Actor's Junk ... Followers Blast Her As Hypocrite…

By Enspirers | Editorial Board

Ozark Boss Explains Series Finale’s Controversial Ruth Twist

The following post mortem includes major spoiler-y details from Ozark‘s swan song — proceed at…

By Enspirers | Editorial Board

You Might Also Like

RBA rates of interest: Reserve Financial institution of Australia leaves money charge on maintain at 3.85%
Money

RBA rates of interest: Reserve Financial institution of Australia leaves money charge on maintain at 3.85%

By Enspirers | Editorial Board
How the Huge Stunning Invoice Will Impact Your Pockets
Money

How the Huge Stunning Invoice Will Impact Your Pockets

By Enspirers | Editorial Board
Younger carer ‘amazed’ as Guardian readers repay her £2,000 wonderful for profit guidelines mistake
Money

Younger carer ‘amazed’ as Guardian readers repay her £2,000 wonderful for profit guidelines mistake

By Enspirers | Editorial Board
Retirement Financial savings Waterfall: In What Order to Make Your Financial savings Contributions
Money

Retirement Financial savings Waterfall: In What Order to Make Your Financial savings Contributions

By Enspirers | Editorial Board
America Age
Facebook Twitter Youtube

About US


America Age: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Terms of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 America Age. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?