Real gross domestic product increased 1.6 percent in 2016, compared to an increase of 2.6 percent in 2015, according to the "second" estimate released by the Bureau of Economic Analysis.
Real GDP increased at an annual rate of 1.9 percent in the fourth quarter of 2016, The increase in real GDP in 2016 reflected positive contributions from PCE, residential fixed investment, state and local government spending, exports, and federal government spending that were partly offset by negative contributions from private inventory investment and nonresidential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP from 2015 to 2016 reflected downturns in private inventory investment and in nonresidential fixed investment and decelerations in PCE, in residential fixed investment and in state and local government spending that were partly offset by a deceleration in imports and accelerations in federal government spending and in exports.
Current-dollar GDP increased 2.9 percent, or $529 billion, in 2016 to a level of $18,565.6 billion, compared with an increase of 3.7 percent, or $643.5 billion, in 2015.
The price index for gross domestic purchases increased 1.0 percent in 2016, compared with an increase of 0.4 percent in 2015.
In the advance estimate, the increase in real GDP for the fourth quarter was also 1.9 percent. The increase in personal consumption expenditures was larger and increases in state and local government spending and in nonresidential fixed investment were smaller than previously estimated.
The increase in real GDP in the fourth quarter reflected positive contributions from personal consumption expenditures, private inventory investment, residential fixed investment, nonresidential fixed investment, and state and local government spending. These increases were partly offset by negative contributions from exports and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP in the fourth quarter primarily reflected a downturn in exports, an acceleration in imports, and a downturn in federal government spending that were partly offset by an upturn in residential fixed investment, an acceleration in private inventory investment, and an upturn in state and local government spending.
