By: Zulfiqar Alialiwali713@yahoo.com

Economy of USA

The Economy of USA

New York City, financial center of the United States Area Rank

9,826,675 km² 1st (nominal) / 1st (PPP)

Currency US$ (USD) Fiscal year October 1 – September 30

Statistics

GDP $16.8 trillion (September 2012)

GDP growth 1.9% (September 2012–September 2013)

GDP per capita $53,101 (2013) (9th, nominal; 6th, PPP)

GDP by sector Agriculture: 1.2%, industry: 19.2%, services: 79.6% (2012 est.)

Inflation (CPI) 1.5% (September 2012–September 2013)

Populationbelow poverty line

15.1% (2012)

Gini coefficient 0.48

Labor force

156 million (includes 12.088 mil. unemployed, September 2013)

Labor force by occupation

farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6%

Unemployment 6.3% (September 2013) Average gross salary $49,000 (December 2013)

Main industries

highly diversified, world leading, high-technology innovator, second largest industrial output in world; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining

Ease of Doing Business Rank 4th

External Exports $1.57 trillion (2013 est.)

Export goods agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles, medicines) 15.0%

Main export partners Canada 19%, Mexico 13.3%, China 7%, Japan 4.5% (2012)

Imports $2.30 trillion (2013 est.)

Import goods Agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle parts, office machines, electric power machinery), consumer goods 31.8% (automobiles, clothing, medicines, furniture, toys)

Main import partners China 19.3%, Canada 14.24%, Mexico 11.12%, Japan 6.14%, Germany 4.3% (2012)

Gross domestic product (GDP)

Market value of all officially recognized final goods and services produced within a country in a given period.

Gross domestic product (GDP)

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

10.59 11.0911.80

12.5613.31 13.96 14.22 13.86 14.45 15.09

GDP of USA

Year

GD

P in

Tril

lions

Gross domestic product (GDP) Growth Rate

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

1.83%2.55%

3.48%3.08%

2.66%1.91%

-0.36%

-3.53%

3.02%

1.70%

GDP Growth Rate of USA

Year

GD

P G

row

th R

ate

GROSS NATIONAL PRODUCT (GNP)

Total income earned by the nation’s factors of production, regardless of where located

GROSS NATIONAL PRODUCT (GNP)

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

10.66 11.1411.91

12.7613.63 14.10 14.39 13.94 14.64 15.23

GNP of USA

Year

GN

P in

Tril

lions

GDP COMPARISON

US22%

China11%

India3%

Japan8%

Others65%

GDP(2012)

US32%

China3%

India1%

Others51%

Japan13%

GDP (2001)

INFLATION RATE

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-1

0

1

2

3

4

5

1.6

2.32.7

3.4 3.22.8

3.8

-0.4

1.6

3.2

Inflation Rate in USA

Year

Infla

tion

Rate

%

UNEMPLOYMENT RATE

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

5.8 6 5.5 5.1 4.6 4.65.8

9.3 9.69

Unemployment Rate in USA

Year

Une

mpl

oym

ent R

ate

%

WHOLESALE PRICE INDEX (WPI)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 20000

20

40

60

80

100

120

140 127.73117.37

109.85120.45

109.69 104.67 10093.18 87.75 83.3 85.26 84.32

WPI of USA

year

wpi

INTERNATIONAL INVESTMENT POSITION (IIP)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

-4,500,000

-4,000,000

-3,500,000

-3,000,000

-2,500,000

-2,000,000

-1,500,000

-1,000,000

-500,000

0

-4,030,250

-2,473,599-2,321,770

-3,260,158

-1,796,005-2,191,653

-1,932,149-2,253,026-2,093,794-2,044,631-1,875,032

-1,337,014

I IP of USA

Year

IIP

PPI

HUMAN DEVELOPMENT INDEX (HDI)

HUMAN DEVELOPMENT INDEX (HDI)

Human Development Index for USA

YearHuman

Development Index (HDI)

Life expectancy at

birth

Mean years of schooling

Expected years of

schooling

Gross National

Income (GNI) per capita

GNI per capita rank minus HDI

rank

Non Income HDI

2012 0.910 78.5 12.4 16.0 43,017 6 0.931

HUMAN DEVELOPMENT INDEX (HDI)

2000 2005 2006 2007 2008 2009 2010 20110.89

0.895

0.9

0.905

0.91

0.915

0.897

0.9020.904 0.905

0.907 0.9060.908

0.91

HDI for USA

Year

HD

I

Exports

Imports

Balance of Trade

Recent Fiscal and

Monetary Policy

Fiscal Deficit

$1.3 Trillion

Fiscal Deficit

More than 8% of GDP

Fiscal Deficit

Close to the 1930’s Deficit

US Borrowings

From Bank And InvestorsFrom Foreign GovernmentsFrom World Bank

US Borrowings 98% of GDP ($17.3 tril)

Revenues and Expenses

Revenues $2.77 trillion (individual income tax, 47.4%; social insurance, 34.2%; corporate taxes, 9.9%; other, 8.5% – 2013)

Expenses $3.45 trillion (Social Security, 23.2%; defence, 17.6%; Medicare, 14.3%;Medicaid, 7.7%; interest, 7.5%; unemployment, 2.0%; education, 2.0%; other, 25.7% – 2013)

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SUMMARY THOUGHTS

•Economic growth signals are still positive and consumption is apparently rebounding, while corporate earnings are strong.

GOOD

BAD

UGLY

Unemployment, Housing, Interest Rates, and Oil all loom as potential caution flags that could reverse the good news story

Government debt and overall debt are not going away as major issues that could reduce long term growth and lead to unpleasant outcomes

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Thank You