Wednesday, December 12, 2007

Crisis Maintenance at 2.8% GDP

There have been three five year periods below 2.8% since 1960, and six above with a range from 2.4% to 5.0%. This would have to represent a fairly pessimistic outcome, particularly coming off a 3.3% 2006 number

The vertical axis has the Intermediate Cost alternative projections given in the 2007 Report for the years from 2007 to 2016. The horizontal axis represents the numbers as they would have to be adjusted for 2.8% GDP over the period 2007-2012.
--------------2008----2009----2010----2011----2012

2007 2.6
2008 3.0-----2.9
2009 2.8-----2.7-----2.8
2010 2.6-----2.6-----2.6-----2.6
2011 2.6-----2.6-----2.6-----2.6-----2.5
2012 2.4-----2.4-----2.4-----2.4-----2.3-----2.3
2013 2.2-----2.2-----2.2-----2.2-----2.2-----2.1
2014 2.1-----2.1-----2.1-----2.1-----2.1-----2.1
2015 2.2-----2.2-----2.2-----2.2-----2.2-----2.0
2016 2.2-----2.2-----2.2-----2.2-----2.2-----2.0

At 2.8% average Real GDP we leave crisis behind by at latest 2010

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