Is there a single value of GDP growth that the Bureau of Economic Analysis calculates each quarter?
No
The Bureau of Economic Analysis’ headline announcement of real GDP growth (the change in national income net of price changes) each quarter represents what would happen to GDP if growth continued at the pace from the previous quarter for a full year. Alternatively, GDP growth can be calculated as a percent change from the same quarter the previous year (e.g. Q4/Q4), or as a percent change in the average GDP level between two consecutive years (Y/Y). These different approaches can provide very different results, particularly during periods of large and rapid change in economic activity, like during the COVID-19 pandemic. For example, the BEA reported an annualized decline in real GDP of 31.4% in the second quarter of 2020 and an increase in real GDP of 33% in the third quarter, but the Q2/Q2 change was -9.0% and -2.8% for Q3/Q3.
This fact brief is responsive to conversations such as this one.
Sources:
EconoFact How Should We Think About 2020 GDP Growth?
Econofact is partnering with Gigafact–an initiative focused on countering misinformation and spreading facts.