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Showing posts with the label Understanding GDP: Deciphering the Differences Between Real and Nominal GDP

U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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Understanding GDP: Deciphering the Differences Between Real and Nominal GDP

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Gross Domestic Product (GDP) stands as a cornerstone of economic analysis, offering insights into a nation's economic health and performance. However, GDP can be measured in two different ways: nominal GDP and real GDP. In this post, we'll delve into the nuances of these two measures, unraveling their differences and importance in economic analysis. Nominal GDP: The Face Value Nominal GDP represents the total value of all goods and services produced within a country's borders during a specific period, measured at current market prices. It serves as a raw measure of economic output, reflecting the current prices of goods and services. Nominal GDP is calculated by simply summing up the value of all final goods and services produced within the economy. While nominal GDP provides a snapshot of current economic activity and output, it can be influenced by changes in prices over time. Fluctuations in prices, whether due to inflation or deflation, can distort the true picture of e...
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