Definition
A quarter's growth restated as if it continued at the same pace for a full year.
The story
If the economy grows 0.5% in one quarter, and that pace held for four quarters, it would grow about 2% over the year. So the headline says "2%." That's why GDP (gross domestic product) numbers look bigger than the change in any single quarter.
Why markets watch it
It's how quarterly GDP is reported, so it's how forecasts and surprises are measured.
See it in the story
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms