United States Economy Profile 2008

Economy - overview

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $46,000. 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 response to the terrorist attacks of 11 September 2001 showed the remarkable resilience of the economy. 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. The rise in GDP in 2004-07 was undergirded by substantial gains in labor productivity. 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 in 2005-2007 threatened inflation and unemployment, yet the economy continued to grow through year-end 2007. 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 $847 billion in 2007. Together, these problems caused a marked reduction in the value and status of the dollar worldwide in 2007.

GDP (purchasing power parity)

$13.86 trillion (2007 est.)

GDP (official exchange rate)

$13.79 trillion (2007 est.)

GDP - real growth rate

2.2% (2007 est.)

GDP - per capita (PPP)

$46,000 (2007 est.)

GDP - composition by sector

agriculture: 0.9%
industry: 20.6%
services: 78.5% (2007 est.)

Population below poverty line

12% (2004 est.)

Household income or consumption by percentage share

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

Inflation rate (consumer prices)

2.7% (2007 est.)

Investment (gross fixed)

15.6% of GDP (2007 est.)

Labor force

153.1 million (includes unemployed) (2007 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

4.6% (2007 est.)

Distribution of family income - Gini index

45 (2007)

Budget

revenues: $2.568 trillion
expenditures: $2.731 trillion (2007 est.)

Public debt

36.8% of GDP (2007 est.)

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

0.5% (2007 est.)

Electricity - production

4.062 trillion kWh (2005)

Electricity - consumption

3.816 trillion kWh (2005)

Electricity - exports

19.8 billion kWh (2005)

Electricity - imports

44.53 billion kWh (2005)

Oil - production

8.322 million bbl/day (2005 est.)

Oil - consumption

20.8 million bbl/day (2005 est.)

Oil - imports

13.15 million bbl/day (2004)

Oil - exports

1.048 million bbl/day (2004)

Oil - proved reserves

21.76 billion bbl (1 January 2006 est.)

Natural gas - production

490.8 billion cu m (2005 est.)

Natural gas - consumption

604 billion cu m (2005 est.)

Natural gas - exports

19.8 billion cu m (2005 est.)

Natural gas - imports

117.9 billion cu m (2005)

Natural gas - proved reserves

5.551 trillion cu m (1 January 2006 est.)

Current Account Balance

-$747.1 billion (2007 est.)

Agriculture - products

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

Exports

$1.14 trillion f.o.b. (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 22.2%, Mexico 12.9%, Japan 5.8%, China 5.3%, UK 4.4% (2006)

Imports

$1.987 trillion f.o.b. (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

Canada 16%, China 15.9%, Mexico 10.4%, Japan 7.9%, Germany 4.8% (2006)

Reserves of foreign exchange and gold

$65.89 billion (2006 est.)

Debt - external

$12.25 trillion (30 June 2007)

Stock of direct foreign investment - at home

$1.818 trillion (2006 est.)

Stock of direct foreign investment - abroad

$2.306 trillion (2006 est.)

Market value of publicly traded shares

$17 trillion (2005)

Economic aid - donor

ODA, $23.53 billion (2006)

Currency (code)

US dollar (USD)

Exchange rates

British pounds per US dollar: 0.4993 (2007), 0.5418 (2006), 0.5493 (2005), 0.5462 (2004), 0.6125 (2003)
Canadian dollars per US dollar: 1.0724 (2007), 1.1334 (2006), 1.2118 (2005), 1.3010 (2004), 1.4011 (2003)
Japanese yen per US dollar: 117.99 (2007), 116.18 (2006) 110.22 (2005), 108.19 (2004), 115.93 (2003)
euros per US dollar: 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.8860 (2003)
Chinese yuan per US dollar: 7.61 (2007), 7.97 (2006), 8.1943 (2005), 8.2768 (2004), 8.2770 (2003)

Fiscal year

1 October - 30 September