United States Economy Profile 2009

Economy - overview

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $46,900. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Hurricane Katrina caused extensive damage in the Gulf Coast region in August 2005, but had a small impact on overall GDP growth for the year. Soaring oil prices between 2005 and the first half of 2008 threatened inflation and unemployment, as higher gasoline prices ate into consumers' budgets. Imported oil accounts for about two-thirds of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. The merchandise trade deficit reached a record $819 billion in 2007 and $821 billion in 2008. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and other industrial corporations. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover.

GDP (purchasing power parity)

$14.26 trillion (2008 est.)
$14.1 trillion (2007 est.)
$13.82 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$14.26 trillion (2008 est.)

GDP - real growth rate

1.1% (2008 est.)
2% (2007 est.)
2.8% (2006 est.)

GDP - per capita (PPP)

$46,900 (2008 est.)
$46,800 (2007 est.)
$46,300 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 1.2%
industry: 19.2%
services: 79.6% (2008 est.)

Population below poverty line

12% (2004 est.)

Labor force

154.3 million (includes unemployed) (2008 est.)

Labor force - by occupation

farming, forestry, and fishing 0.6%, manufacturing, extraction, transportation, and crafts 22.6%, managerial, professional, and technical 35.5%, sales and office 24.8%, other services 16.5%
note: figures exclude the unemployed (2007)

Unemployment rate

7.2% (December 2008 est.)
4.6% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 2%
highest 10%: 30% (2007 est.)

Distribution of family income - Gini index

45 (2007)
40.8 (1997)

Investment (gross fixed)

14.3% of GDP (2008 est.)

Budget

revenues: $2.524 trillion
expenditures: $2.978 trillion (2008 est.)

Public debt

60.8% of GDP (2007 est.)
65% of GDP (2004 est.)

Inflation rate (consumer prices)

3.8% (2008 est.)
2.9% (2007 est.)

Central bank discount rate

0.5% (31 March 2009)
4.83% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
8.05% (31 December 2007)

Stock of money

$1.624 trillion (31 December 2008)
$1.395 trillion (31 December 2007)

Stock of quasi money

$8.171 trillion (31 December 2008)
$7.466 trillion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$14.21 trillion (31 December 2007)

Industries

leading industrial power in the world, highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining

Industrial production growth rate

-2% (2008 est.)

Electricity - production

4.167 trillion kWh (2007 est.)

Electricity - production by source

fossil fuel: 71.4%
hydro: 5.6%
nuclear: 20.7%
other: 2.3% (2001)

Electricity - consumption

3.892 trillion kWh (2007 est.)

Electricity - exports

20.14 billion kWh (2007 est.)

Electricity - imports

51.4 billion kWh (2007 est.)

Oil - production

8.457 million bbl/day (2007 est.)

Oil - consumption

20.68 million bbl/day (2007 est.)

Oil - imports

13.71 million bbl/day (2005)

Oil - exports

1.165 million bbl/day (2005)

Oil - proved reserves

20.97 billion bbl (1 January 2008 est.)

Natural gas - production

545.9 billion cu m (2007 est.)

Natural gas - consumption

652.9 billion cu m (2007 est.)

Natural gas - exports

23.28 billion cu m (2007 est.)

Natural gas - imports

130.3 billion cu m (2007 est.)

Natural gas - proved reserves

5.977 trillion cu m (1 January 2008 est.)

Current Account Balance

-$673.3 billion (2008 est.)
-$731.2 billion (2007 est.)

Agriculture - products

wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; forest products

Exports

$1.291 trillion (2008 est.)
$1.148 trillion (2007 est.)

Exports - commodities

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% (2003)

Exports - partners

Canada 20.1%, Mexico 11.7%, China 5.5%, Japan 5.1%, Germany 4.2%, UK 4.1% (2008)

Imports

$2.112 trillion (2008 est.)
$1.968 trillion (2007 est.)

Imports - commodities

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) (2003)

Imports - partners

China 16.5%, Canada 15.7%, Mexico 10.1%, Japan 6.6%, Germany 4.6% (2008)

Reserves of foreign exchange and gold

$77.65 billion (31 December 2008 est.)
$70.57 billion (31 December 2007 est.)

Debt - external

$13.64 trillion (31 December 2008)
$13.43 trillion (31 December 2007)

Stock of direct foreign investment - at home

$2.367 trillion (31 December 2008 est.)
$2.093 trillion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$3.066 trillion (31 December 2008 est.)
$2.791 trillion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$19.95 trillion (31 December 2007)
$19.43 trillion (31 December 2006)

Economic aid - donor

ODA, $23.53 billion (2006)

Currency (code)

US dollar (USD)

Currency (code)

USD

Exchange rates

British pounds per US dollar: 0.5302 (2008), 0.4993 (2007), 0.5418 (2006), 0.5493 (2005), 0.5462 (2004)
Canadian dollars per US dollar: 1.0364 (2008), 1.0724 (2007), 1.1334 (2006), 1.2118 (2005), 1.3010 (2004)
Chinese yuan per US dollar: 6.9385 (2008), 7.61 (2007), 7.97 (2006), 8.1943 (2005), 8.2768 (2004)
euros per US dollar: 0.6827 (2008), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)
Japanese yen per US dollar: 103.58 (2008), 117.99 (2007), 116.18 (2006) 110.22 (2005), 108.19 (2004)

Fiscal year

1 October - 30 September