what is GDP rate of company
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ted November 28, 2019
The GDP growth rate measures how fast the economy is growing. It does this by comparing one quarter of the country's gross domestic product to the previous quarter. GDP measures the economic output of a nation.
The GDP growth rate is driven by the four components of GDP. The main driver of GDP growth is personal consumption. This includes the critical sector of retail sales. The second component is business investment, including construction and inventory levels. Government spending is the third driver of growth. Its largest categories are Social Security benefits, defense spending, and Medicare benefits. The government often increases spending to jump-start the economy during a recession. Fourth is net trade.
Below you can see a chart tracking the annual GDP growth rate from 2006 to 2018. Exports add to GDP while imports subtract from it.
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