This is the average growth rate in real GDP over a period of time.
Below is an illustration of the theoretical growth rate for an economy in its economic cycle. This the level of GDP growth that a country should be achieveing if the peak and trough phases of the business cycle have been averaged out.
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Between 1948 and 2012 the UK economy has achieved trend growth of 2.6% p.a. compound. The highest annual rate of growth was 7.4% in 1973 and the lowest was -5.2% in 2009.
