Growth and welfare of the US economy crucially depend on the performance of business sectors and related activities. Per capita GDP of the United States has turned out to be $46,000.
US economy is a market-oriented one. Business firms and private individuals play a major role in decision-making.
Both US federal and state governments provide business firms with great operational flexibility in all areas of their businesses. US business firms make use of latest technology to beat their counterparts in the other nations of the world.
As per the 2007 estimates, agriculture sector contributes 0.9% of the total US GDP. Contribution of the industrial sector stands out to be 20.5%; whereas contribution of the service sector amounts to 78.5%. The real growth rate of US GDP stands at 2.2% as per the 2007 estimate. GDP at Purchasing Power Parity has turned out to be $13.48 trillion according to the estimate of 2007.
Performance of the US economy is driven by the diverse business sectors. The US federal government takes a number of policy measures to facilitate the economic prosperity of US business firms. Mining, finance and insurance, manufacturing, real estate, food services and accommodation, transportation and warehousing, information technology, construction, educational services, wholesale trade, healthcare services, scientific, professional and technical services and many other services come under the purview of US business.
US industrial sector has emerged as the most important industrial power of today’s world. Use of state-of-the-art technology distinguishes its industries from other industrial powers of the world.
Export and import figures are also highly important. Major exportable products include consumer goods like medicines and automobiles, industrial supplies mostly organic chemicals, and capital goods like parts of motor vehicles, transistors, telecommunication devices, computers, and many more. The US export volume (estimated) for the year 2007 has been $1.149 trillion f.o.b.
As far as imports are concerned, the United States imports consumer goods like furniture, clothing, automobiles, medicines, and toys, industrial supplies like crude oil, agricultural products, and capital goods like office machines, electric power machinery, computer software, and many more. The import figure of the US economy has turned out to be $1.956 trillion f.o.b. as per the 2007 estimate.
The US dollar is extending its gains in response to the strong US GDP figures. There are four elements of the report to note. First, the economy expanded by 4.0% in Q2, well above consensus expectations. Second, Q1 was revised to show a 2.1% contraction rather than 2.9%. Third, personal consumption improved to 2.5% from a revised 1.2% pace in Q1 (originally 1.0%). Fourth, and arguably even more significant that the growth itself is the core PCE deflator. It rose to 2.0% from 1.2%.
Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
Professor of Economics & Director of the Earth Institute at Columbia University. Special Adviser to the UN Secretary-General on the Millennium Development Goals. Founder & co-President of the Millennium Promise Alliance.
Chancellor of the Exchequer of the United Kingdom from 1992 to 2007. Prime Minister of the UK between 2007 and 2010. Inaugural 'Distinguished Leader in Residence' at New York University. Advisor at World Economic Forum
Andrea Edwards has worked in marketing and communications all over the globe for 20 years, and is now focused on her passion – writing. A gifted communicator, strategist, writer and avid blogger, Andrea is Managing Director of SAJE, a digital communications agency, and The Writers Shop – a regional collaboration between the best business writers in Asia Pacific