The US economy has gained some pounds.
The national accounts have undergone their most extreme methodological makeover in years and the results not only show that the world’s largest economy is bigger than previously understood, but the 2008-09 Great Recession was not as deep either.
The revisions by the Bureau of Economic Analysis occur every five years and go back as far as 1929. Changes to the definition of investment have added 3.6 per cent, or $559.8bn, to the size of US gross domestic product. That is equivalent to $1,783, per year, for every man, woman and child in the US.
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