U.S. Congressman Kevin Brady of Texas, the top House Republican on the Joint Economic Committee issued the following statement on the today’s release by Bureau of Economic Analysis (BEA) that real gross domestic product (GDP) grew at an annual rate of 1.5 percent during the 3rd-quarter of 2015.
“The economy is slowing again which is the trademark signature of the disappointing Obama recovery as it fails struggling Americans,” Brady said. “Restoring growth and opportunity must be our first priority. Fixing a broken tax code and scaling back unnecessary regulations that are major impediments to private investment are critical to faster economic growth and job creation.”
- Average Post-1960 Recoveries. Real GDP has grown at an annual rate of only 2.1 percent during the current recovery. During other recoveries since 1960 lasting longer than one year, real GDP grew at an annual rate of 3.9 percent in the 25 quarters following a recession. During the strong Reagan recovery of the 1980s, real GDP grew at an annual rate of 4.8 percent over a comparable period.
- Growth Gap. Compared with the average of other post-1960 recoveries, the growth gap in real GDP stands at $1.842 trillion (2009$), up from $1.831 trillion (2009$) last quarter. Compared with the Reagan recovery, the growth gap stands at $2.836 trillion (2009$).
- Eliminating the Growth Gap. In order to eliminate the growth gap in real GDP compared with the average of other post-1960 recoveries by the end of 2016, real GDP would need to growth at an annual rate of 11.6 percent over the next five quarters. To catch up with the Reagan recovery, real GDP would need to grow at an annual rate of 16.6 percent over the next five quarters.
Real GDP growth per capita. In the six years since the recession ended, real GDP per capita has grown at an annualized rate of 1.4 percent. The average per capita growth rate over a comparable period in other post-1960 recoveries was 2.8 percent. In Reagan recovery real GDP growth per capita was 3.9 percent. The per capita growth gap compared with other post-1960 recoveries stands at $4,618 (2009$) and at $8,316 (2009$) when compared with the Reagan recovery.