The Weakest Economic Recovery Since World War II Putters Along
New GDP data released today shows an economy that continues to grow, though at a disappointingly moderate pace.
The good news is that GDP growth picked up after the weak, snow-encrusted first quarter of 2015, when the economy eked out a 0.6 percent growth rate. The bad news is that growth was expected to hit a 2.5 percent rate or better in the second quarter, but initial estimates arriving today pegged that rate at 2.3 percent. Over the first six months of the year, the economy has expanded at an annual rate of 1.5 percent.
The U.S. recession officially ended in the second quarter of 2009. Since then, growth has been relatively steady but lackluster. Compared to other recoveries since the end of World War II, the current recovery is notably weak – without question the weakest of the bunch. The average annual growth rate from 2011 through 2014 was 2.0 percent, based on updated figured released today.
Economists have argued about the causes — a glut of capital, excessive regulation, the domination of finance, low wages driving weak demand — but the simple fact remains: This is a feeble recovery.
This graphic we produced on the Federal Reserve Bank of Minneapolis’s website tells the story – look for the bright red line:
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