Final Sales for Domestic Product for the fourth quarter of 2009 was again revised downward. The first estimate was $14,503 billion. It was revised downward to $14,482 billion. The final figure is $14,477 billion. It grew at an annual rate of only 2.2 percent since the third quarter of 2009.
It is 10.5 percent below the long run 5.4 percent growth path. It is 7.5 percent below the modified 3 percent growth path I favor.
My preferred target for the first quarter of 2011 is unchanged by the revisions. It remains $16,202 billion. (The second quarter target is $16,324 billion.)
Between the fourth quarter of 2009 and the first quarter of 2011, nominal expenditure needs to increase by 11.2 percent, which is a 9 percent annual rate of growth.
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