by Isabella LopreiatoReal Gross Domestic Product (measure of the value of economic output adjusted for price inflation) increased at an annual rate of 1.1 percent in the first quarter of 2016, according to the Bureau of Economic Analysis. In comparison to the fourth quarter of 2015, where the Current Dollar (Nominal) GDP increased 1.4 percent, or $65.3 billion. In addition, the nation is experiencing an upward trending in terms of the Real GDI (Gross Domestic Income), as the average increased by 2.0 in 2016’s first quarter, compared with an increase of 1.7 percent in the fourth quarter from 2015.
An integral component of GDP is profit, while profits of domestic financial corporations decreased $11.3 billion in the first quarter. That is much better from decrease of $24.0 billion in 2015’s fourth quarter. In fact, profits in domestic non-financial corporations increased $72.9 billion, in contrast to a decrease of $129.2 billion. Furthermore, it is to evaluate United States GDP profits standing with the rest of the world. When looking at GDP component of profits the U.S experience a decreased of $26.9 billion, compared to the rest of the world with an average decrease of $6.5 billion. Overall, the domestic GDP trends primary reflect a positive outlook to the percent change in real GDP, with only a few partial offsets. However, given the recent news United Kingdom’s decision to break away from the European Union that may negatively impact GDP on the international level.