Core Points - The U.S. Department of Commerce has released the preliminary economic report for Q1 2025, showing a quarter-over-quarter contraction of 0.07%, an annualized decline of 0.3%, but a year-over-year increase of 1.9%, with nominal GDP at $73,227 billion [1][3] - There is a distinction between nominal GDP and real GDP, with the real GDP for Q1 2025 calculated at $58,815.25 billion, reflecting a quarter-over-quarter decrease of $40.5 billion [3][4] - The nominal GDP using market prices for Q1 2025 is reported at $74,944 billion, indicating a nominal growth rate of 4.6% when not adjusted for price fluctuations [6][9] Summary of Different Accounting Standards - The real GDP is calculated using a base year price index (2017), while nominal GDP reflects the current market prices of goods and services [4][6] - The unadjusted GDP figure of $73,227 billion for Q1 2025 shows a year-over-year increase of 1.9% when price fluctuations are excluded, while the adjusted figure shows a year-over-year increase of 2.1% [6][9] - The difference between seasonally adjusted and unadjusted figures is significant, with the former accounting for seasonal variations and the latter providing a raw economic snapshot [7][10] Implications of Mixed Reporting Standards - The mixed use of seasonal adjustment standards in reporting can lead to confusion among readers, as the quarter-over-quarter figures typically use seasonally adjusted data while year-over-year figures often use unadjusted data [10][11] - This practice is common in China, where the GDP figures are reported using both standards, leading to potential misunderstandings among those unfamiliar with economic reporting conventions [10][11]