What is the average GDP percentage that reflects a good economy?

A GDP growth rate of approximately 3% is considered indicative of a healthy and expanding economy. This rate is often viewed as sustainable and reflects a balance between growth and inflation. Economists frequently identify 3% as a benchmark for assessing a robust economic environment capable of fostering job creation, investment, and overall improvement in living standards. It indicates that the economy is growing without overheating, which can lead to inflationary pressures.

A lower percentage, such as 1%, may signal sluggish growth or stagnation, while rates around 5% or higher can indicate a rapidly expanding economy that may not be sustainable over the long term, potentially leading to economic imbalances. Rates of 10% are typically found in emerging markets or during economic recoveries but are not sustainable in the mature economies typical of developed nations like the U.S. Thus, 3% captures a desirable balance, making it the appropriate choice to reflect a good economy.