Figure A
Recessions and rising unemployment happen when GDP is demand-constrained: Actual real GDP and potential real GDP over time and forecasts
| Quarter | Actual GDP | Potential GDP, 2007 forecast | Potential GDP, 2019 forecast | Potential GDP, 2024 forecast |
|---|---|---|---|---|
| 2000Q1 | 82.04514283 | 79.65601594 | 81.08288983 | 81.6233986 |
| 2000Q2 | 83.53965664 | 80.39912911 | 81.92549157 | 82.4878557 |
| 2000Q3 | 83.62478717 | 81.14560479 | 82.75662067 | 83.3131944 |
| 2000Q4 | 84.12433787 | 81.89039921 | 83.56799133 | 84.094541 |
| 2001Q1 | 83.84825482 | 82.62762801 | 84.34303196 | 84.8330896 |
| 2001Q2 | 84.37204408 | 83.34552241 | 85.07855572 | 85.52967002 |
| 2001Q3 | 84.03388668 | 84.04408241 | 85.78667262 | 86.185444 |
| 2001Q4 | 84.26503973 | 84.72162678 | 86.46674528 | 86.80671559 |
| 2002Q1 | 84.96973137 | 85.37227112 | 87.11240001 | 87.39703796 |
| 2002Q2 | 85.48997351 | 86.00274044 | 87.73064789 | 87.96738691 |
| 2002Q3 | 85.83758986 | 86.61891912 | 88.3316868 | 88.52714376 |
| 2002Q4 | 85.94400303 | 87.22416967 | 88.92125307 | 89.07955212 |
| 2003Q1 | 86.39625899 | 87.82689834 | 89.51528092 | 89.63117063 |
| 2003Q2 | 87.1618426 | 88.42458326 | 90.10102298 | 90.1867864 |
| 2003Q3 | 88.61142641 | 89.02058692 | 90.68676503 | 90.742998 |
| 2003Q4 | 89.64008702 | 89.61827184 | 91.27569394 | 91.30782347 |
| 2004Q1 | 90.1479143 | 90.21847864 | 91.87609548 | 91.88423619 |
| 2004Q2 | 90.8466941 | 90.82625106 | 92.50007967 | 92.47083872 |
| 2004Q3 | 91.70804956 | 91.44074849 | 93.12788808 | 93.07165021 |
| 2004Q4 | 92.64389425 | 92.06281156 | 93.75378438 | 93.6814195 |
| 2005Q1 | 93.67137249 | 92.69328088 | 94.37649383 | 94.28046625 |
| 2005Q2 | 94.1330874 | 93.32879395 | 94.98135696 | 94.86239896 |
| 2005Q3 | 94.87088536 | 93.97187266 | 95.56964849 | 95.43416906 |
| 2005Q4 | 95.39763053 | 94.61999512 | 96.13818159 | 95.9911135 |
| 2006Q1 | 96.68109156 | 95.27232072 | 96.66656044 | 96.53231371 |
| 2006Q2 | 96.93175369 | 95.93053069 | 97.16689506 | 97.05943925 |
| 2006Q3 | 97.07659383 | 96.59462504 | 97.65065808 | 97.56161395 |
| 2006Q4 | 97.91134601 | 97.26460377 | 98.1223111 | 98.03736528 |
| 2007Q1 | 98.20575577 | 97.94130751 | 98.59332675 | 98.51819306 |
| 2007Q2 | 98.80639898 | 98.623055 | 99.06752924 | 99.00682448 |
| 2007Q3 | 99.37570942 | 99.30900562 | 99.53663278 | 99.50227723 |
| 2007Q4 | 100 | 100 | 100 | 100 |
| 2008Q1 | 99.57316496 | 100.6943569 | 100.4627299 | 100.4946525 |
| 2008Q2 | 100.1661228 | 101.3929169 | 100.924185 | 100.9744829 |
| 2008Q3 | 99.63996879 | 102.0948394 | 101.3697059 | 101.4367075 |
| 2008Q4 | 97.45909005 | 102.800965 | 101.7929188 | 101.8749961 |
| 2009Q1 | 96.3529843 | 103.5112938 | 102.1798018 | 102.2809272 |
| 2009Q2 | 96.18035849 | 104.2258257 | 102.5112336 | 102.6628701 |
| 2009Q3 | 96.51851589 | 104.9428795 | 102.8171707 | 103.0244691 |
| 2009Q4 | 97.56195611 | 105.6607739 | 103.102712 | 103.3775633 |
| 2010Q1 | 98.03431233 | 106.3786683 | 103.365308 | 103.7355868 |
| 2010Q2 | 98.98316307 | 107.0932002 | 103.6259919 | 104.1042256 |
| 2010Q3 | 99.74638195 | 107.8068914 | 103.8892253 | 104.4920176 |
| 2010Q4 | 100.2701712 | 108.5205827 | 104.1632939 | 104.8946909 |
| 2011Q1 | 100.031924 | 109.234274 | 104.4787915 | 105.3128874 |
| 2011Q2 | 100.7088299 | 109.9504871 | 104.809586 | 105.745908 |
| 2011Q3 | 100.6863649 | 110.6709034 | 105.1575895 | 106.192944 |
| 2011Q4 | 101.8173004 | 111.3963635 | 105.5221645 | 106.6491824 |
| 2012Q1 | 102.6709705 | 112.1302297 | 105.8994869 | 107.1133121 |
| 2012Q2 | 103.1291383 | 112.8699804 | 106.300392 | 107.587002 |
| 2012Q3 | 103.2781167 | 113.6147748 | 106.7159565 | 108.0668296 |
| 2012Q4 | 103.3975359 | 114.364613 | 107.1455432 | 108.5517923 |
| 2013Q1 | 104.4173288 | 115.1161324 | 107.5885146 | 109.0455974 |
| 2013Q2 | 104.6969589 | 115.8693331 | 108.0391345 | 109.5417422 |
| 2013Q3 | 105.5884648 | 116.6242151 | 108.4974027 | 110.0395919 |
| 2013Q4 | 106.5083475 | 117.3799376 | 108.9614073 | 110.5427291 |
| 2014Q1 | 106.1412221 | 118.1365008 | 109.4247745 | 111.0512073 |
| 2014Q2 | 107.5121784 | 118.8922234 | 109.8938781 | 111.5639182 |
| 2014Q3 | 108.8186956 | 119.6487866 | 110.3680806 | 112.0862753 |
| 2014Q4 | 109.3690882 | 120.4061904 | 110.8480194 | 112.612935 |
| 2015Q1 | 110.3540011 | 121.1644348 | 111.3343319 | 113.1426895 |
| 2015Q2 | 111.0374101 | 121.9235199 | 111.8295675 | 113.6753149 |
| 2015Q3 | 111.4819807 | 122.6842862 | 112.3273527 | 114.2070031 |
| 2015Q4 | 111.6877128 | 123.4458931 | 112.8251378 | 114.7364268 |
| 2016Q1 | 112.3350596 | 124.2100219 | 113.3190988 | 115.2639329 |
| 2016Q2 | 112.695682 | 124.9766726 | 113.8009497 | 115.7911919 |
| 2016Q3 | 113.4949631 | 125.7458452 | 114.2808885 | 116.3174261 |
| 2016Q4 | 114.1245743 | 126.5183803 | 114.762102 | 116.8439719 |
| 2017Q1 | 114.6796964 | 127.2951185 | 115.2433156 | 117.3745386 |
| 2017Q2 | 115.3217225 | 128.0760598 | 115.7309028 | 117.9136489 |
| 2017Q3 | 116.2315551 | 128.8603637 | 116.2293253 | 118.4712629 |
| 2017Q4 | 117.5416194 | 129.64803 | 116.7424073 | 119.0464152 |
| 2018q1 | 118.4975643 | 130.2712631 | 117.2822588 | 119.640028 |
| 2018q2 | 119.1265844 | 130.917346 | 117.8444182 | 120.2528892 |
| 2018q3 | 119.869703 | 131.5784476 | 118.4231492 | 120.8764933 |
| 2018q4 | 120.0393729 | 132.2508178 | 119.0159024 | 121.5065693 |
| 2019q1 | 120.6914491 | 132.9338243 | 119.6220402 | 122.1426046 |
| 2019q2 | 121.6923241 | 133.6285081 | 120.2428376 | 122.7852176 |
| 2019q3 | 123.0703746 | 134.3284286 | 120.8725581 | 123.4284315 |
| 2019q4 | 123.8596056 | 135.0231395 | 121.5086523 | 124.055797 |
| 2020q1 | 122.1717745 | 135.71464 | 122.1460212 | 124.676049 |
| 2020q2 | 112.5307416 | 136.4059492 | 122.7859396 | 125.2934038 |
| 2020q3 | 121.2625331 | 137.090099 | 123.4290449 | 125.8945509 |
| 2020q4 | 122.5176173 | 137.7781869 | 124.0746996 | 126.5003108 |
| 2021q1 | 124.0925322 | 138.4423611 | 124.7178049 | 127.0651286 |
| 2021q2 | 125.97841 | 139.1071506 | 125.3628223 | 127.6291534 |
| 2021q3 | 127.0047058 | 139.7860459 | 126.0078396 | 128.2188322 |
| 2021q4 | 129.1595725 | 140.481118 | 126.652857 | 128.8379315 |
| 2022q1 | 128.5169552 | 141.1957992 | 127.2985117 | 129.4920561 |
| 2022q2 | 128.3354616 | 141.9199672 | 127.9435291 | 130.1640716 |
| 2022q3 | 129.1802639 | 142.6436695 | 128.5866344 | 130.8371524 |
| 2022q4 | 130.0014188 | 143.3643279 | 129.2284649 | 131.5059718 |
| 2023q1 | 130.7244372 | 144.0825389 | 129.8671086 | 132.1735271 |
| 2023q2 | 131.3930666 | 144.7980195 | 130.5038401 | 132.8380289 |
| 2023q3 | 132.9614784 | 145.5117808 | 131.1373849 | 133.5025905 |
| 2023q4 | 134.0764519 | 146.231008 | 131.7683801 | 134.1796425 |
| 2024q1 | 134.606153 | 146.952273 | 132.3955512 | 134.8642245 |
| 2024q2 | 135.3935514 | 147.6767147 | 133.0195354 | 135.557771 |
| 2024q3 | 136.105219 | 148.4053629 | 133.6396953 | 136.262792 |
| 2024q4 | 136.7576499 | 149.1380969 | 134.2573058 | 136.9777933 |

Sources: GDP data from Table 1.1.6 of the National Income and Product Accounts (NIPA) data from the Bureau of Economic Analysis (BEA). Forecasts of Potential GDP from CBO (2025b).
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