US GDP Growth and Economic Trends 1964-2015
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Employment data, GDP contributors, changes in per capita income, and GDP projections for the US economy. Graphical presentation of the unemployment situation and the GDP growth rate since 1964
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US GDP Growth and Economic Trends 1964-2015
- 2. US GDP growth rate since 1964 -4 -2 0 2 4 6 8 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 GDPGrowthRate US GDP growth Rate (%) • The US economy has seen a steady positive GPD growth in the past 50 years. • The value of GDP has steadily risen in the same period from $685.8 billion in 1964 to $17.4 trillion in 2014, (US Department of Labor, 2009; World Bank, 2015)
- 3. Changes in Income per capita ▪ The positive growth in the economy has had a correlative effect on the per capita income of the US citizens ▪ Per capita income has increased from $3, 573.94 to $ 10, 778.6 in 2014 (World Bank, 2015) ▪ The exponential growth in the average incomes per person over the last 50 years has more than doubled; the national GDP has grown into over 17 trillion dollars.
- 4. Major Contributors to the U.S. GDP ▪ The greatest contributor to the national GDP in 2014 was expenditures in personal consumption. The expenses accounted for $11.9 trillion of the reported $17.4 trillion GDP. ▪ Expenditures in goods accounted for $3.9 trillion while expenses in the service industry accounted for $7.9 trillion of the $11.9 that personal consumption expenses contributed to the economy. ▪ Business investments contributed $2.85 trillion to the national GDP. ▪ Government spending contributed $3.17 trillion to the national GDP in 2014. ▪ In 2014, there was a higher net imports than the exports from the US. Net imports were $2.87 trillion while net exports were $2.33, leading to subtraction of up to $540 billion from the national GDP, (U.S. Bureau of Economic Analysis, 2015).
- 5. U.S Unemployment Data in the Past 10 Years 0 2 4 6 8 10 12 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Unemploymentrate(%) U.S. Unemployment Rate (2005-2015)
- 6. U.S Inflation Data in the Past 10 Years -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ave.Inflation(%) U.S Average Inflation (2005-2015)
- 7. U.S. Economic Growth Rate (2010-2015) 0 1 2 3 4 5 6 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EconomicGrowthrate(%) U.S Economic Growth (2010-2015)
- 8. U.S. Economic Growth for the Third Quarter 2015 • The GDP decelerated in the latest quarter at the rate of 1.5% after achieving an accelerated growth of 3.9% in the second quarter. • The reduction is attributed to reduced exports and reduced personal and government spending. • there were also reductions in private residential investments. • The rebounding of oil prices drove up costs for certain items making it a little bit expensive to acquire them. This caused the consumers to reduce their spending. • Government spending reduced due to cutting back of the foreign military budget due to withdrawal of troops from some international military bases.
- 9. ▪ The projections in the economic growth of the U.S. according to the dada from the World Economic Outlook Projections indicate a positive growth for both 2016 and 2017. ▪ The economy is projected to grow by 2.5% in 2016 and the value is projected to go up in the following year by 0.5% to achieve a national growth of 3.0% in 2017. ▪ The projected growth is attributed to rebound in the oil prices and rise in bond yields. ▪ This turn around will however affect consumer prices since the increase in oil prices will drive up costs of goods and services. GDP Projections for U.S. Economy (2016-2017)
Editor's Notes
- . The general trend has been a positive growth. The economy rebounds after a depression; economic stimulus programs for the 2008-09 helped bring the economy back to the positive growth. . The total GDP has grown from just 685 billion dollars in 1964 to a tremendous 17 trillion dollars in 2014.
- Positive growth in the economy has increased the purchasing power of the citizens. Average income per person increased from $3, 573.9 in 1964 to $10, 778.6 reported in 2014. The increase in the national capital base in terms of the national GDP has enhanced the economy and allowed many people to expand their income brackets. Increase in international trade has exponentially expanded the U.S. economy and improved the dollar value of the traded volumes, which has been reflected in the national GDP
- Personal consumption expenditures accounts for more than half the value of the national GDP. The increased purchasing power and growth in individual growth has contributed immensely to this realization. Government expenditures also form the bulk of the national income, given that the government is the largest single consumer of high tech equipment. Military expenditures form the bulk of government expenses. Recurring expenses such as salaries also make the government a huge spender given the government is the largest employer.
- Before the 2008 economic meltdown led to a spike in unemployment ratios in the U.S. Unemployment reached maximum in 2010 and then started slowing down after the government injected funds into various sectors to revive the economy. Current data form the U.S. Department of Labor indicate that unemployment rates are at an all time low level of 5.34% since 2007.
- Data from the U.S. Department of Labor indicate the rate of inflation in the country is on a downward trend after it achieved a peak of 3.2% in 2011. The stabilization of crude prices internationally contributed to the reduction in inflation rates as the prices of goods stabilized ant the dollar value strengthened internationally. Overall, there has been a downward trend in the inflation values that were at 3.4% in 2005 and down to 0.03% in 2015 according to the data from the U.S. Department of labor.
- Quarterly reports indicate a positive growth in the economy since the first quarter of 2010 when the growth started slowly but picked up. The economy has been on a positive trend from quarter to quarter over the years, slowing up in June 2013 but picking up again. Stabilization of the economy and strengthening of the dollar has contributed to the positive growth. The second and the third quarters of 2015 have been stagnant due to the slowing down of exports from the country making the U.S. a net importer in the third quarter of 2015.