{"id":4597,"date":"2012-06-12T00:55:07","date_gmt":"2012-06-12T04:55:07","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=4597"},"modified":"2012-06-12T00:55:07","modified_gmt":"2012-06-12T04:55:07","slug":"australia-gdp-growth-is-not-real","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/","title":{"rendered":"Australia: GDP growth is not real"},"content":{"rendered":"<p>Mark Graph: Table 5 of the national accounts includes the implicit price deflators (IPD) for each term in the expenditure equation for GDP&#8230;.the big deflationary item was exports&#8230;.<\/p>\n<p>So we get to the heart of the anomaly: largely because we exported a touch less in volume terms (in Q1 2012 compared with Q4 2011) but at significantly reduced prices, this contributed significantly to an outcome where real GDP grew significantly while nominal GDP stagnated.<\/p>\n<p>via <a href=\"http:\/\/markthegraph.blogspot.com.au\/2012\/06\/understanding-our-price-deflationary.html\">Understanding our price deflationary boom | Mark Graph<\/a>.<\/p>\n<p>Comment:~ So real GDP growth is not really real. The major difference between nominal GDP growth (1.2% annualized) and real GDP growth (a far more impressive 5.2% annualized) is a fall in the price of exports!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mark Graph: Table 5 of the national accounts includes the implicit price deflators (IPD) for each term in the expenditure equation for GDP&#8230;.the big deflationary item was exports&#8230;. So we get to the heart of the anomaly: largely because we exported a touch less in volume terms (in Q1 2012 compared with Q4 2011) but &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Australia: GDP growth is not real&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,5],"tags":[1526,2486,2871],"class_list":["post-4597","post","type-post","status-publish","format-standard","hentry","category-australia-nz-countries-regions","category-economy","tag-gdp-deflator","tag-nominal-gdp-growth","tag-real-gdp-growth"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Australia: GDP growth is not real - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia: GDP growth is not real - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Mark Graph: Table 5 of the national accounts includes the implicit price deflators (IPD) for each term in the expenditure equation for GDP&#8230;.the big deflationary item was exports&#8230;. So we get to the heart of the anomaly: largely because we exported a touch less in volume terms (in Q1 2012 compared with Q4 2011) but &hellip; Continue reading &quot;Australia: GDP growth is not real&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/people\/The-Patient-Investor\/61572934660810\/\" \/>\n<meta property=\"article:published_time\" content=\"2012-06-12T04:55:07+00:00\" \/>\n<meta name=\"author\" content=\"Colin Twiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Twiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\"},\"author\":{\"name\":\"Colin Twiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/d42b18d516a80149d739845749ac6454\"},\"headline\":\"Australia: GDP growth is not real\",\"datePublished\":\"2012-06-12T04:55:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\"},\"wordCount\":120,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"keywords\":[\"GDP deflator\",\"nominal GDP growth\",\"Real GDP growth\"],\"articleSection\":[\"Australia &amp; NZ\",\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\",\"name\":\"Australia: GDP growth is not real - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2012-06-12T04:55:07+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/12\/australia-gdp-growth-is-not-real\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Australia: GDP growth is not real\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters. Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis. Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008\/2009 and 2020 bear markets well ahead of actual events. 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Real quarterly growth is essentially unchanged at 0.70% (2.8% annualized) in Q3. Nominal GDP growth (gray below) slowed to 4.94% for the four quarters ending in Q3. Ten-year Treasury\u2026","rel":"","context":"In &quot;GDP and Activity&quot;","block_context":{"text":"GDP and Activity","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/gdp-and-activity\/"},"img":{"alt_text":"Real GDP Growth","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-30-realgdp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-30-realgdp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2024\/2024-10-30-realgdp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":6036,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/11\/06\/is-the-fed-finally-listening-to-scott-sumner\/","url_meta":{"origin":4597,"position":1},"title":"Is the Fed finally listening to Scott Sumner?","author":"Colin Twiggs","date":"November 6, 2012","format":false,"excerpt":"Brendan Greely writes of Scott Sumner. Sumner who holds a Ph.D. from the University of Chicago, made a suggestion in the late 1980s to the New York Federal Reserve. He proposed that the Fed set a target for nominal GDP\u2014real growth in GDP plus the rate of inflation. He felt\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44307,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/09\/26\/corporate-bond-yields-and-crude-oil-prices\/","url_meta":{"origin":4597,"position":2},"title":"Corporate bond yields and crude oil prices","author":"Colin Twiggs","date":"September 26, 2023","format":false,"excerpt":"Swedish Economist Knut Wicksell described the natural rate of interest (now referred to as the \"neutral rate\") as the rate of return on new capital investment. The natural rate is roughly equal to the growth rate of nominal GDP: increase in economic output is directly related to the level of\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Moody's Baa Corporate Bond Yield & GDP Growth","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-09-25-baa--gdp.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-09-25-baa--gdp.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-09-25-baa--gdp.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":13635,"url":"https:\/\/thepatientinvestor.com\/index.php\/2016\/07\/31\/the-real-problem-private-investment\/","url_meta":{"origin":4597,"position":3},"title":"The real problem: Private Investment","author":"ColinTwiggs","date":"July 31, 2016","format":false,"excerpt":"Want to know the real cause of low GDP growth? Look no further than Private Investment. Private Investment ran with peaks around 10 percent of GDP and troughs around 4 percent throughout the 1960s, 70s and most of the 80s. Since then Private Investment has declined to the point that\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4569,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/06\/07\/forex-australia-be-careful-what-you-measure\/","url_meta":{"origin":4597,"position":4},"title":"Forex: Australia &#8211; be careful what you measure","author":"Colin Twiggs","date":"June 7, 2012","format":false,"excerpt":"The Aussie Dollar rallied strongly off support at $0.96 against the greenback, on the back of strong GDP numbers. Expect a test of the declining trendline around $1.02. A peak below zero on 63-day Twiggs Momentum, however, would warn of a strong primary down-trend. Be careful what you measure! Australian\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":35614,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/07\/09\/strong-wages-growth-warns-of-higher-interest-rates\/","url_meta":{"origin":4597,"position":5},"title":"Strong wages growth warns of higher interest rates","author":"Colin Twiggs","date":"July 9, 2022","format":false,"excerpt":"The US economy added 372,00 new jobs in June -- despite talk of hiring freezes at large retailers -- similar to the previous two months. Average hourly earnings continues to grow, coming in at 6.35% for the 12 months to June. Strong earnings growth reflects the labor shortage, where job\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Employment Growth","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-08-jobs.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-08-jobs.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-08-jobs.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-08-jobs.png?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=4597"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4597\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=4597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=4597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=4597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}