Question

What is the current GDP growth rate? Also, examine the trend of GDP growth over the past few years. What stage of the business cycle is the U.S. economy currently in given the trend of GDP growth?

Answer 1

The current GDP growth rate of the US economy is 2.6% (Updated Jan 2019)

Over the past few years, the US economy is experiencing a fluctuating trend in its GDP growth rates. It increased from 1.5% in Jan 2016 to 1.8% in Jan 2017 to 2.3% in Jan 2018 to current 2.6% in Jan 2019.

Despite increase in GDP growth rates every year, the US economy experienced a drastic fall in its GDP growth rate from 4.2% in July 2018 to the current rate of 2.6%

This means the economy is undergoing a decline in its GDP growth rate and can be said to be operating in its recessionary phase.