Second quarter GDP revised down
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This morning, the Bureau of Economic Analysis announced the revised estimate for GDP growth in the second quarter of 2010. Originally, it was estimated that the economy grew by 2.4 percent. That has since been revised down to 1.6 percent. In response to the news, the Associated Press lamented, “The economy barely has a pulse.”
While the U.S. is sputtering, one of our European counterparts appears to have recovered. Germany, as David Brooks points out today, passed a much smaller fiscal stimulus and has tightened its belt much more and faster than the U.S., is growing at an amazing 9 percent annual rate. While our unemployment rate is stuck at 9.5 percent, Germany’s rate is lower than it was before the recession. Earlier this month we noted a similar phenomena in Canada.