In this week’s Economic Report, Dr. Rick Harper discusses the latest first quarter revision of the gross domestic product (GDP). According to the Bureau of Economic Analysis, GDP shows a 2.9% drop in the annual rate in January through March, the weakest quarter for the U.S. economy since the Great Recession.
In this week’s Economic Report, Dr. Rick Harper discusses the outlook for 2014. Harper expects this year to be a little bit better than 2013. “The main reason for that is that we’ll see less of a drag coming from the federal sector. The slow down in federal spending last year probably subtracted 1.5 percentage points from GDP (Growth Domestic Product) growth. We could have been up almost 4 percent," Harper says.
According to Harper, the shrinkage in government spending should be less in 2014, with some of the hardest hits already with Sequestration.