Tuesday, September 17, 2013

$123.6 Billion

I noted last month that a major change in how Gross Domestic Product (GDP) is being calculated could have a significant impact on the calculated size of Pittsburgh's regional GDP.  2012 updates for regional (MSA) GDP are out today, but the latest metro data does not yet incorporated the changes I pointed out that focused on how Research and Development activities are measured and capitalized. per the BEA's Press Release:
The statistics of GDP by metropolitan area released today are consistent with the GDP-by-state statistics released in June 2013 and incorporate revisions to national GDP by industry released by BEA in December 2012. However, these statistics do not incorporate the comprehensive revision to the national income and product accounts released in July 2013. The comprehensive revision included the capitalization of research and development expenditures and artistic originals and improved measures of transactions for defined benefit pensions; these will be included in the September 2014 release of GDP-by-metropolitan-area statistics. Changes in GDP will likely be concentrated in metropolitan areas where industries affected by these revisions account for a notable portion of total GDP. (emphasis added)

So we will have to wait another year to see what impact the revised methodology has on Pittsburgh metrics. For now the 2012 GDP for the Pittsburgh MSA is officially $123.577 billion annually.Nonetheless, the 2012 GDP for the region marks a jump of 3.6% over the previous year, which was itself revised upwards.When adjusted for inflation it works out to a 2.1% gain in real GDP. For both real and nominal its slower than recent growth for the region which had been growing about as fast as anywhere for a couple years. This year the growth rate is about in the middle of the pack for metro regions per the BEA's map:


Anonymous BrianTH said...

Per capita, though, we are still doing considerably better than average--that's thanks in part to a relatively flat population, but it still indicates that the relative quality of the local economy is improving even if the sheer quantity of it is not getting much boost from population growth.

Wednesday, September 18, 2013 10:51:00 AM  

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