Wednesday, December 7, 2011

US Population Growth Rate

Even though it is the most important driver of GDP growth, population changes don't get much love from financial analysts.  Below is a chart of the growth rate of the US population (y/y) for the last 60 years.  Population growth has slowed considerably in the 2000s and is actually at its lowest rate in 60 years now.  It's not unlikely that this has been influenced by the hard economic times.  Those who only care about GDP rather than GDP per capita should be concerned that lower population growth provides another major headwind.

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