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United States GDP Growth Rate
United States Gross Domestic Product (GDP) expanded 0.10% over the last 4 quarters. The United States Gross Domestic Product is worth 14204 billion dollars or 22.91% of the world economy, according to the World Bank. The economy of the United States is the largest in the world. The United States is a market-oriented economy where private individuals and business firms make most of the decisions. The federal and state governments buy needed goods and services predominantly in the private marketplace. This page includes: United States GDP Growth Rate chart, historical data, forecast and news.
| Year | Mar | Jun | Sep | Dec | Average |
| 2009 | -3.30 | -3.80 | -2.60 | 0.10 | -2.40 |
| 2008 | 2.00 | 1.60 | 0.00 | -1.90 | 0.43 |
| 2007 | 1.40 | 1.90 | 2.70 | 2.50 | 2.13 |
| 2006 | 3.00 | 3.00 | 2.20 | 2.40 | 2.65 |
Despite Recent Growth, US Recovery is Still Weak
Published:
2/2/2010 12:59:10 PM
By:
Anna Fedec, contact@tradingeconomics.com
In the fourth quarter of 2009, the United States economy expanded at an annualized rate of 5.7% giving the impression that the recovery in world’s largest economy has been stronger than expected. Yet, growth was mainly due to inventory rebuilding and the recent economic expansion maybe short lived.
Indeed, on a year over year basis, the US economy grew only 0.1%, which is not very strong having in mind that in the last three months of 2008 US output deteriorated by 1.9%. Moreover, surprising strong expansion in the fourth quarter of 2009 may not last in 2010 as 3.4 percentage points out of 5.7% growth came from inventory rebuilding. In fact, the production is likely to slow down once companies will adjust to demand level.
Looking further, sooner or later, the poor condition of the labor market will start having negative impact on the pace of recovery. In fact, the economy has lost 7.3 million jobs since the recession began in December 2007 and the unemployment rate is the highest in 26 years. Evidently, without growth in employment, households can’t generate income and create demand which is necessary in elevating production levels.
To make things even worst, the biggest fiscal deficit on record combined with the anticipation of low interest rates for a long time is discouraging investors from depositing money in the United States. In fact, the US government deficit is likely to reach 10.6% of GDP in 2010 and the Obama administration is projecting that national debt will rise from 64% of national output to 77% by 2020. More importantly, the US economy may experience a significant slowdown when the Federal Reserve exits from its unconventional policy easing, and is forced to increase rates to fight inflation.
United States Economic News
US Payrolls Fall in January, Unemployment at 9.7%
Published: 2/5/2010 8:38:28 AM
By: TradingEconomics.com, Reuters
Employers unexpectedly cut 20,000 in January, but the unemployment rate surprisingly fell to a five-month low of 9.7 percent, according to a government report on Friday that hinted at some labor market improvement starting to take root.
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ADP Says U.S. Companies Cut Estimated 22,000 Jobs
Published: 2/3/2010 9:32:30 AM
By: TradingEconomics.com, Bloomberg
Companies in the U.S. cut an estimated 22,000 jobs in January, in line with forecasts, according to data from a private report based on payrolls.
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Despite Recent Growth, US Recovery is Still Weak
Published: 2/2/2010 12:59:10 PM
By: Anna Fedec, contact@tradingeconomics.com
In the fourth quarter of 2009, the United States economy expanded at an annualized rate of 5.7% giving the impression that the recovery in world’s largest economy has been stronger than expected. Yet, growth was mainly due to inventory rebuilding and the recent economic expansion maybe short lived.
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Economy in U.S. Grew at 5.7%
Published: 1/29/2010 9:26:28 AM
By: TradingEconomics.com, Bloomberg
The economy in the U.S. expanded in the fourth quarter at the fastest pace in six years as factories cranked up assembly lines and companies increased investment in equipment and software.
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US Federal Reserve Holds Rate Steady
Published: 1/27/2010 2:22:22 PM
By: TradingEconomics.com, Federal Reserve
The Federal Reserve kept interest rates near zero and restated its intention to cease buying mortgage-backed securities in March.
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Consumer Prices in U.S. Rose 0.1% in December
Published: 1/16/2010 2:42:20 PM
By: TradingEconomics.com, Bloomberg
The cost of living in the U.S. slowed in December from a month earlier, indicating the economic recovery is showing few signs of stoking inflation.
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Trade Deficit in U.S. Increased
Published: 1/12/2010 11:24:15 AM
By: TradingEconomics.com, Bloomberg
The trade deficit in the U.S. widened in November more than anticipated as imports climbed faster than exports, pointing to a rebound in global demand that is fueling growth.
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US Economy Sheds 85,000 Jobs in December
Published: 1/8/2010 8:42:00 AM
By: TradingEconomics.com, Reuters
U.S. employers unexpectedly cut 85,000 jobs in December, government data showed on Friday, cooling optimism on the labor market's recovery and keeping pressure on President Barack Obama.
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ADP Says U.S. Companies Cut Estimated 84,000 Jobs
Published: 1/6/2010 9:21:50 AM
By: TradingEconomics.com, Bloomberg
Companies in the U.S. cut an estimated 84,000 jobs in December, according to a private report based on payroll data.
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US Economy Grows 2.2% in Q3
Published: 12/22/2009 9:57:49 AM
By: TradingEconomics.com, Reuters
The U.S. economy grew at a much slower pace than previously thought in the third quarter, restrained by weak business investment and a slightly more aggressive liquidation of inventories, data showed on Tuesday.
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More news
GDP Growth Definition
Economic growth is the increase in value of the goods and services produced by an
economy. It is conventionally measured as the percent rate of increase in real gross
domestic product, or GDP. Growth is usually calculated in real terms, i.e. inflation-adjusted
terms, in order to net out the effect of inflation on the price of the goods and
services produced. In economics, "economic growth" or "economic growth theory" typically
refers to growth of potential output, i.e., production at "full employment," which
is caused by growth in aggregate demand or observed output.As economic growth is
measured as the annual percent change of National Income it has all the advantages
and drawbacks of that level variable. But people tend to attach a particular value
to the annual percentage change, perhaps since it tells them what happens to their
pay check.
The real GDP per capita of an economy is often used as an indicator of the average
standard of living of individuals in that country, and economic growth is therefore
often seen as indicating an increase in the average standard of living.However,
there are some problems in using growth in GDP per capita to measure general well
being.GDP per capita does not provide any information relevant to the distribution
of income in a country. GDP per capita does not take into account negative externalities
from pollution consequent to economic growth. Thus, the amount of growth may be
overstated once we take pollution into account. GDP per capita does not take into
account positive externalities that may result from services such as education and
health. GDP per capita excludes the value of all the activities that take place
outside of the market place (such as cost-free leisure activities like hiking).
Economists are well aware of these deficiencies in GDP, thus, it should always be
viewed merely as an indicator and not an absolute scale. Economists have developed
mathematical tools to measure inequality, such as the Gini Coefficient. There are
also alternate ways of measurement that consider the negative externalities that
may result from pollution and resource depletion (see Green Gross Domestic Product.)The
flaws of GDP may be important when studying public policy, however, for the purposes
of economic growth in the long run it tends to be a very good indicator. There is
no other indicator in economics which is as universal or as widely accepted as the
GDP.Economic growth is exponential, where the exponent is determined by the PPP
annual GDP growth rate. Thus, the differences in the annual growth from country
A to country B will multiply up over the years. For example, a growth rate of 5%
seems similar to 3%, but over two decades, the first economy would have grown by
165%, the second only by 80% (source: wikipedia).
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