The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:
Current-dollar GDP was raised $451.6 billion in 2007, up 3.2 percent from the previous estimate. The new estimate reflects various enhancements to the account.
Research and development (R&D) is now treated as investment. This “capitalization” of R&D boosted GDP by $330.9 billion, with notable revisions to the following industries: federal government, chemical products manufacturing, computer and electronic products manufacturing, and motor vehicles, bodies and trailers, and parts manufacturing.
Entertainment, literary, and artistic originals are also now treated as investment. The new treatment increased GDP by $70.4 billion, with notable revisions to the following industries: motion picture and sound recording, broadcasting and telecommunications, publishing, except internet, and “performing arts, spectator sports, museums, and related activities.”
In addition, a more expansive capitalization of the ownership transfer costs of residential fixed assets increased GDP by $57.0 billion. And an improved accrual accounting treatment of transactions for defined benefit pension plans increased GDP by $29.7 billion, which affected the contributions to GDP by the federal as well as state and local governments.