Economic Growth Since the Great Recession
In 2008, the United States’ economy bottomed out, leaving the country in its worst financial state since the Great Depression. While there are still scars from this devastating downturn a decade later, most metrics show that the country’s economy is roaring. In the third quarter of 2017, the GDP grew by 3.3 percent, signaling strong growth. And as of July 2017, the unemployment rate had dropped to 4.3 percent — the lowest since 2001.
As the U.S. enjoys this economic expansion, here are the five facts you need to need to know about how the economy has changed since the Great Recession.
1. The GDP has grown by close to $5 trillion since 2008.
Today’s GDP is estimated to be $19.5 trillion, compared with $14.6 trillion at the start of 2008. And this growth is expected to continue. Analysts at Morgan Stanley predict that the GDP will grow by 2.5 percent next year.
2. The country’s 3.3 percent economic growth is the fastest growth in any quarter over the past three years.
Moreover, this is the first time growth has topped 3 percent in consecutive quarters since 2014. And if GDP growth is over 3 percent again this quarter, it will be the first time we have had that level of consecutive quarter growth since late 2004 and early 2005.
3. The recently passed tax bill could impact the government deficit.
It remains to be seen how the 2017 tax overhaul will impact the deficit. If the bill stimulates growth, the deficit could come down and a budget surplus could occur.
However, according to economists, the 2018 deficit could exceed $1 trillion, due in part to the decrease in government revenue from the new legislation. According to the Joint Committee on Taxation, the new tax plan will decrease government revenue by $135 billion next year and $280 billion in 2019. The deficit had also increased by roughly $9 trillion, or 86 percent, under President Obama.
4. The Dow Jones has skyrocketed this year, climbing more than 5,000 points.
This is the first time in history the 5,000 milestone has been reached. Today, the Dow Jones is 24,754, up more than 18 percent year-to-date. This is a stark contrast to 2008, when the Dow was 8,776 after the market had plummeted.
5. The labor market is near full employment.
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