Private GDP Expanding Faster Than GDP

Image Source: Pexels
Real Private GDP is expanding over Real GDP in the latest report on an annual basis. This reflects a decline in relative Government Spend&Investment with policies of the current administration taking effect. The history from Jan 1950 is shown with the history from Jan 2000 providing greater detail during the “Sequestration Period”. During that period, Congress sought to lessen government spending growth with the result that the private economy out-performed the contribution to Real GDP by 1.37% in the July 2011 report. The latest report has the Real Private GDP % growth up 0.11% higher than Real Government Spending&Investment % growth. The Apr 2025 report showed Real Private GDP % growth broke into positive territory at 0.02% better than Real Government Spending&Investing % growth. History shows that government spending crowds out the basis for economic health represented by the growth of the private economy from which government extracts taxes.
The Real GDP news is heartening that the economic ship of the US is righting itself with the correct policy prescriptions.
Real Private GDP % = Real GDP % – Real Govt Spending and Investment %


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