Real GDP Numbers Revised Downward for 2007, 2008 and 2009
![Illustration of revised GDP numbers](https://www.davemanuel.com/images/gdp_revised.gif)
In addition, the BEA also announced that they had revised their real GDP numbers downwards for 2007, 2008 and 2009.
In short - the "Great Recession" had been worse than previously thought.
Here were the original real GDP growth numbers (change from preceding year) for 2007, 2008 and 2009:
2007, +2.1%
2008, +0.4%
2009, -2.4%
The revised numbers looked like this:
2007, +1.9%
2008, +0.0%
2009, -2.6%
Previous estimates had the economy contracting at an annual rate of 2.5% from Q4 2007 to Q2 2009 - the revised estimates came in at 2.8%.
Two of the major reasons for the lowered numbers? Downwards revisions in state and local government spending, as well as upwards revisions to imports.
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While the nation currently entertains the possibility of a "double dip recession" presenting itself in the months ahead, it is interesting to note that the previous recession was quite a bit worse than originally thought.
I don't think that anybody will really be surprised.
Source: BEA.gov - Q2 2010 GDP Advance Estimate
Filed under: The Economic Meltdown