[feckoo]

Hie David/Forum

A bit buffled by these economic numbers the Uk GDP came in at 1.6 y/y and 0.2q/q one would easily think that if q/q is 0.2 then y/y would 0.8 as the year has 4 quarters how do they come up with the 1.6 anyone ???

Thanks

[David Waring]

Hey Feckoo,

Good question, the answer to which lies in the definitions for Year over Year and Quarter over Quarter.

The UK GDP number that you are referring to was just released showing the growth of the UK economy in the 2nd quarter of this year. As you have pointed out, GDP grew 1.6% year over year. What this 1.6% number represents, is how much UK GDP grew in the second quarter of this year when compared to the GDP number for the 2nd quarter of last year.

As you have also pointed out, GDP grew .2% on a quarter over quarter basis. What this .2% number represents, is how much UK GDP grew when compared to the prior quarter, which in this case would be the first quarter GDP for this year.

Feel free to reply if that does not make sense or if there are any other questions or comments on this one.

Best Regards,
Dave