What is Prelim GDP q/q ?
Prelim GDP q/q stands for Preliminary Gross Domestic Product Quarter-over-Quarter. It is used to assess the changes in a country’s economic output from one quarter to the next. The Preliminary GDP figures are usually released by government agencies or statistical organizations before the Final GDP numbers are published.
Here is the English translation of your sentence:
“This serves as an initial indicator of the economic condition and direction. This information is important for policymakers, investors, and analysts to understand the current state of the economy and make informed decisions.”
Generally, the preliminary GDP quarter-on-quarter figure is calculated by national statistical agencies or government organizations responsible for collecting and analyzing economic data, following a general set of procedures.
What does the preliminary GDP survey include?
Data Collection: Various sources contribute to the calculation of GDP, including business surveys, government records, and data from other relevant sectors. These sources provide information on factors such as consumption, investment, government spending, and net exports.
Once the data is collected, it is organized according to the components of GDP, such as consumption, investment, government spending, and net exports.
Adjustments and Revisions: The data may be adjusted and revised to account for factors such as seasonal variations, inflation rates, and changes in methodology. These adjustments ensure that the GDP figures accurately reflect economic activity and changes over different periods.
Calculation: The preliminary GDP figure for the current quarter is calculated using statistical methods and various economic models. This figure represents an approximate change in economic output compared to the previous quarter.
Publication: After the preliminary GDP figures are calculated, they are released to the public and other stakeholders. This initial estimate provides valuable insights into the direction and status of the economy, although it may be revised as more data becomes available.
Revisions: As additional data is collected and analyzed, the preliminary GDP figures may be revised to better reflect more accurate and comprehensive information. Typically, the revised GDP figures are released in subsequent reports, such as the final GDP numbers for the respective quarter.
Impact on currency, the dollar, and gold
When the GDP growth rate is higher than expected, indicating a strong economy, it often leads to speculation that the Federal Reserve may tighten monetary policy by raising interest rates. Higher interest rates attract foreign investment.
Demand for the USD then increases, leading to its appreciation. At the same time, investors tend to shift away from safe-haven assets like gold, resulting in decreased demand and a drop in gold prices.
