Guest post by Joe Hoft
The US GDP Numbers were released on Friday and after accounting for new revisions [?] and seasonal adjustments[?], the debt to GDP ratio still continues to decrease.
The US GDP for the second quarter accelerated to a whopping 4.1% under the leadership of President Donald Trump. This was another BIG Trump win doubling the first quarter growth of 2.2%.
— Trading Economics (@tEconomics) July 27, 2018
Some changes were uncovered when reviewing the GDP numbers from Friday. The major change being that the US Bureau of Economic Analysis (BEA) put through some revisions this quarter that reduced the amount of actual GDP reported in 2017 by a quarter of a trillion dollars but increased the amount of GDP in the Obama years. A comparison of the GDP previously reported by the BEA with the current amounts follows ->
It’s not clear what the revisions are in the report but clearly they increase the GDP during the Obama years while decreasing the actual total amount of GDP under President Trump in 2017 and beyond.
Nevertheless, when comparing the amount of US Debt from the government’s daily report of debt to the amount of GDP from the current release, the amount of debt to GDP is decreasing under President Trump (a good thing).
Even with the revisions this quarter, the ratio of debt to GDP is decreasing drastically – from 105.3% to 103.9% since the election!