GDI to GDP Ratio

Record highs recorded (at least going back to 1947, using the most recent data available).

Figure 1: GDI to GDP ratio (in blue), and GDI to GDP ratio in the second quarter assuming constant real GDI in Q2 (light blue box). The National Bureau of Economic Research has identified peak-to-trough recession dates shaded in grey. The red arrow indicates data to be reviewed in the Annual Review, September 29, 2022. Source: BEA, NBER, and author’s calculations.

Remember that GDI and GDP are supposed to measure the same object. The fact that GDI is so high relative to GDP (according to Furman (2016)) indicates that GDP will eventually adjust.

This entry was posted on by Minzy Chen.

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