<p><em>Annualized</em> growth rate does not mean the same as <em>annual</em> growth rate.</p>
<p>An <em>annual</em> growth rate looks at YoY. A <em>quarterly</em> growth rate looks at QoQ.</p>
<p>The <em>annualized</em> growth rate takes the <em>quarterly</em> growth rate and raises it to the <em>fourth power</em>. Essentially, the <em>annualized</em> figure is saying &quot;if the economy maintains the same current quarterly growth for the coming three quarters, we will have an <em>annual</em> growth rate of this number.&quot;</p>

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2021-09-03T13:23:06.857Z
2021-09-03T13:23:06.857Z
JD Montgomery
<p>Because those data are Seasonally adjusted annual rate: <a href="https://en.wikipedia.org/wiki/Seasonally_adjusted_annual_rate" rel="nofollow noreferrer">https://en.wikipedia.org/wiki/Seasonally_adjusted_annual_rate</a>
<a href="https://i.sstatic.net/gv4Tv.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/gv4Tv.jpg" alt="From &#39;more information tab&#39;"></a></p>

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2019-03-13T17:43:04.000Z
So the chart shows growth rate for that quarter, seasonally adjusted, multiplied by 4?
Evil Washing Machine
CC BY-SA 4.0
2019-03-13T17:50:36.303Z
Yes, it's like such grow would have continued for the whole year. And 2.9 is the real year grow and it's close to the averege of the quarterly gains: (2.6 + 3.4 + 4.2 + 2.2)/4 = 3.1
Michel_T.
CC BY-SA 4.0
2019-03-13T16:38:01.517Z
2019-03-13T16:38:01.517Z
Michel_T.
<p>According to <a href="https://www.statista.com/statistics/188185/percent-chance-from-preceding-period-in-real-gdp-in-the-us/" rel="nofollow noreferrer">statista.com</a>, US Q4 GDP growth rate was 2.6% over the economy in Q3. However, why is the annualized growth rate for the US therefore not be a sum of all 4 quarters if their definition of QoQ growth is basically how much the economy grew over the previous quarter? i.e. why is according to statista, the GDP growth of the US in 2018-19 only 2.9%, and not 2.6 + 3.4 + 4.2 + 2.2? </p>

<gdp><united-states>
GDP Growth QoQ vs YoY: Why do the figures not match?
Evil Washing Machine
# GDP Growth QoQ vs YoY: Why do the figures not match?

(Asked by: username_0 on 2019-03-13)

According to [statista.com](https://www.statista.com/statistics/188185/percent-chance-from-preceding-period-in-real-gdp-in-the-us/), US Q4 GDP growth rate was 2.6% over the economy in Q3. However, why is the annualized growth rate for the US therefore not be a sum of all 4 quarters if their definition of QoQ growth is basically how much the economy grew over the previous quarter? i.e. why is according to statista, the GDP growth of the US in 2018-19 only 2.9%, and not 2.6 + 3.4 + 4.2 + 2.2?

**Tags:** gdp, united-states

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## 2 answers

### Answer by username_2 on 2019-03-13. Score: 3 | Accepted answer

Because those data are Seasonally adjusted annual rate: <https://en.wikipedia.org/wiki/Seasonally_adjusted_annual_rate>
[![From 'more information tab'](https://i.sstatic.net/gv4Tv.jpg)](https://i.sstatic.net/gv4Tv.jpg)

> **Comments:**
> **username_0**: So the chart shows growth rate for that quarter, seasonally adjusted, multiplied by 4?  
> **username_2**: Yes, it's like such grow would have continued for the whole year. And 2.9 is the real year grow and it's close to the averege of the quarterly gains: (2.6 + 3.4 + 4.2 + 2.2)/4 = 3.1  

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### Answer by username_1 on 2021-09-03. Score: 0

*Annualized* growth rate does not mean the same as *annual* growth rate.

An *annual* growth rate looks at YoY. A *quarterly* growth rate looks at QoQ.

The *annualized* growth rate takes the *quarterly* growth rate and raises it to the *fourth power*. Essentially, the *annualized* figure is saying "if the economy maintains the same current quarterly growth for the coming three quarters, we will have an *annual* growth rate of this number."


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