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UNITED STATES OF
AMERICA: FROM2006-2012.
AN INSIGHT OF
GROWTH AND
DEVELOPMENT:
Submited by Ramya Balakrishnan
Ex-MBA-Christ University
Reg No: 1122027
Submitted to Dr. K.Srinivasan
Subject: Indian Financial System
Subject Code: MBAE341Due Date: 04/07/2012
Word Count: 2187 (Ex-Tables, reference and appendix)
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An insight of Growth and development of United States of America: from
2006-2012.
Country Overview
The USA is the world's foremost economic and military power, with global interests and an
unmatched global reach. It has a population of about 317.6 million (UN, 2010) withWashington DC as its capital, the total area is 9.8 million sq km (3.8 million sq miles) with
English as the major language and Christianity as major religion. The average life
expectancy: 76 years (men), 81 years (women) (UN) (BBC, 2010). It is now ruled by
Democratic Senator President Barack Obama.
Overview on current economic status
GDP (purchasing power parity): $15.04 trillion (2011 est.), $14.82 trillion (2010 est.). GDP
(official exchange rate): $15.06 trillion (2011 est.). GDP Growth: 2.8% (2011 est.). Inflation:1.6% (2011 est.). Labour force: 153.9 million (includes unemployed 2010 est.).
Unemployment: 8.6% (December 2011). Budget: Revenues $2.162 trillion, expenditures
$3.456 trillion (2010 est.). Major 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, defence. Major Trading Partners: The US is a global trader with global markets. Its
main trading partners are Canada, Mexico, China, Japan, UK and Germany.. Exports: $1.289
trillion (2010 est.). Exports - commodities: capital goods, automobiles, industrial supplies and
raw materials, consumer goods, agricultural products. Imports: $1.935 trillion (2009 est.).
Imports - commodities: crude oil and refined petroleum products, machinery, automobiles,
consumer goods, industrial raw materials, food and beverages. Debt - national: $14.71 trillion
(30 June 20011). (CIA, The world fact book, 2012).
Growth and development of USA from 2006 to 2012.
2006.
The domestic consumption of oil by US was about 55% of its oil imports. It was during the
year 2005 the oil prices went high and doubles to that was in 2003-04. This was a reason for
the increase in inflation in US and around the world where the purchase power of citizens
went down. (CIA, 2012) The Oil prices doubled between 2001 and 2006, lead to chain of
events that conglomerated causing a huge fall in its economy. The same year home prices
peaked; higher gasoline prices plagued into consumers' budgets and many individuals fell
behind in their mortgage payments (BBC, 2012). Yet the demand for housing was being
fueled by banks mortgage policies which tempted the buyers to purchase more houses. . In2006, the bubble burst as housing prices started to decline. This caught many homeowners off
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guard, who had taken loans with little money down. As they realized they would lose money
by selling the house for less than their mortgage, they foreclosed. An escalating foreclosure
rate panicked many banks and hedge funds those who had bought mortgage-backed securities
on the secondary market and now realized they were facing huge losses (Acharya, V.V. and
M. Richardson, 2010). The combination of perverse incentives in the financial sector and
goals of increasing homeownership rates created the setting for the emergence of so-called
sub-prime housing market in the US. Such sub-prime borrowers who would not be
regarded as credit-worthy under normal prudential standards were deemed to be profitable
and worthy business targets by yield-seeking lenders and investors. Aggressive lending and a
drop in lending standards during the period resulted in rapid growth in non-prime loans. By
2006, 48 per cent of all mortgage originations were sub-prime or home equity, up from just
15 per cent in 2001. The deterioration in lending standards that accompanied this growth was
clear: households were taking out adjustable rate mortgages (ARMs), sometimes with a loan-value ratio of 100 per cent (i.e. no initial equity). To entice borrowers, these loans had low
initial repayments for the first few years (also known as teaser interest rates) (Baily et al.
2008). In addition to the rise in these types of mortgages, speculation in states such as Florida
helped fuel the housing bubble (Garnaut, R, 2009).
From Appendix 1
Key Figures for 2006
GDP 13 336.2
CPI Inflation: 3.2%
Unemployment rate (Oct 2006) 8.43%
Current account balance (% of GDP) -3.41%
Budget (fiscal) balance (% of GDP) -7.64%
Interest rates (% on 10-year govt borrowing) 1.95%
Consumer spending 64.88%
Government 17.67%
Investment 16.6%
Exports 12.82%
Imports 13.8%
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2007
Despite a sharp housing market correction, overall growth has been holding up fairly well.
Strong foreign demand and a decline in import growth have slowed the rise in the external
deficit. With activity near capacity limits, some inflationary pressures have emerged. Reining
them in without stifling growth is the main challenge for monetary policy. Looking furtherahead, the key challenges are to sustain healthy growth and ensure fiscal sustainability in the
face of population ageing. Against this backdrop, the Survey focuses on the following issues:.
Against this backdrop, the trigger for the crisis unsurprisingly was the US housing market.
After the Federal Reserve started increasing interest rates, the delinquency rate on home loans
began to rise in 2006 before gaining momentum in 2007 (Astley et al. 2009). The end of low,
introductory interest (teaser) rates on sub-prime loans was a major factor in driving this rise
in delinquencies. This rise in bad loans subsequently led to the failure of a number of US
mortgage lenders. Over 2007, hedge funds were hit hard by the defaults and subsequent
unwinding of the sub-prime market (Baker, G, 2007). However, the real problem was that
banks and other investors around the globe were exposed to this situation, but because of the
complex nature of the financial products, particularly the collateral debt obligations and
credit default swaps, did not know the size of their exposure and losses. Consequently, in
mid-2007, financial institutions started to hoard liquidity, which led to a freezing of the
market for asset-backed commercial paper. By August 2007, banks became afraid to lend to
each other because they didn't want these toxic loans as collateral (Bezemer, D. 2009).
Key Figures for 2007
GDP 13 995.0
CPI Inflation: 2.9%
Unemployment rate (Oct 2007) 8.21%
Current account balance (% of GDP) -2.41%
Budget (fiscal) balance (% of GDP) -8.4%
Interest rates (% on 10-year govt borrowing) 2.5%
Consumer spending 74.3%
Government 18.7%
Investment 14.6%
Exports 13.42%
Imports 15.3%
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2008
The National Bureau of Economic Research announced that the U.S. has been in a recession
since December 2007, making official what most Americans have already believed about the
state of the economy. By 2008 employers have trimmed payrolls by 1.2 million jobs in the
first 10 months of this year. And the government also reported a loss of another 325,000 jobsfor November.. From the appendix 1 it also looks at real personal income, industrial
production as well as wholesale and retail sales has faced the worst times of any previous
decade. In addition, the gross domestic product, which is the reading most typically
associated with a recession in the general public was also at its lowest. In 2008, soaring oil
prices threatened inflation and caused deterioration in the US merchandise trade deficit,
which peaked at $840 billion. 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, in October 2008 the US Congress
established a $700 billion Troubled Asset Relief Program (TARP). The government used
some of these funds to purchase equity in US banks and industrial corporations. 2008
November - Democratic Senator Barack Obama becomes the first black president of the
United States.
Key Figures for 2008
GDP 14 296.9
CPI Inflation: 3.8%
Unemployment rate (Oct 2008) 10.1.%
Current account balance (% of GDP) -6.41%
Budget (fiscal) balance (% of GDP) -7.4%
Interest rates (% on 10-year govt borrowing) 2.5%
Consumer spending 73.5%
Government 12.7%
Investment 10.6%
Exports 9.87%
Imports 12.3%
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2009
Following events in 2008, particularly the collapse of Lehman Brothers in September, risk
loving banks and investors around the world rapidly reversed their perceptions. Due to the
complexity of the mortgage-backed securities, they were, however, unaware of the true extent
of the liabilities linked ultimately to a rapidly deteriorating US housing sector. Consequently,liquidity quickly dried up, almost bringing the global financial system to its knees. GDP
contracted until the third quarter of 2009, making this the deepest and longest downturn since
the Great Depression. In February, Congress passed a $170 billion tax rebate meant to
stimulate the economy. But that only boosted GDP during the second quarter.. Gross
domestic product, rose 0.9% in the first quarter. In the second quarter, GDP advanced an
estimated 2.8For the year U.S. economy actually fell 0.55%. The U.S. economy last posted a
full years negative GDP in 1991, when it declined 0.2%. Industrial production output by the
nations factories and mines dropped 2.8% in September, and a very steep 6.0% in the third
quarter. 2009. The unemployment rate was 6.5%, a jump of 0.4 also was highest level in 14
years. The economy has lost a total of 1.2 million jobs since the beginning of the year 2009,
From Appendix 1, the personal income increased $24.5 billion, or 0.2%, and disposable
personal income increased $25.7 billion, or 0.2%, in September. . Finally the recession was
under recovering with the steps and measures that were being taken, although most of the
markets, housing and banking sector were vulnerable of being drowned again by low
financial backup.
Key Figures for 2009
GDP 14 043.9
CPI Inflation: -0.4%
Unemployment rate (Oct 2009) 9.2%
Current account balance (% of GDP) -4.1%
Budget (fiscal) balance (% of GDP) -8.4%
Interest rates (% on 10-year govt borrowing) 2.5%
Consumer spending 62.5%
Government 18.7%
Investment 12.6%
Exports 13.7%
Imports 16.5%
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2010
The economic recovery in the United States from arguably the most significant recession
since the Great Depression of the 1930s is underway amid substantial economic stimulus
(Appendix 1). Real output has grown at a notable pace since the third quarter of 2009 and net
job gains, which typically lag output, turned positive at the start of 2010. The most notable isthe significant tightening of credit and the loss of one-quarter of household net worth between
the middle of 2007 and early 2009. Rebuilding the remaining lost net worth and reducing
debt burdens was put as main priority for the upcoming years. . Growth in the United States
economy, the worlds largest economy, lost momentum after the first few months of this
year. GDP growth slowed from 3.7% in the first quarter to 1.7% and 2.5% in the second and
third quarters respectively, and the unemployment rate, at 9.6% in October, remained
stubbornly high. The recovery in the labour market has been lacklustre and the economy has
only regained about one-fifth of the jobs lost during the recession. The U.S. housing market
continues to demonstrate weakness with housing starts at historically low levels. As a result
of the slow pace of recovery, the U.S. Federal Reserve pledged on November 3, 2010 to
embark on a second round of quantitative easing (known as QE2), involving the purchase of
US$600 billion of long-term U.S. Government debt over the next seven months. QE2 is
intended to lower longer-term borrowing costs and the value of the U.S. dollar, thereby
strengthening exports and investment, and creating employment.
Key Figures for 2010
GDP 14 582.4 e (+1.6)%
CPI Inflation: 1.6%
Unemployment rate (Oct 2010) 8.9%
Current account balance (% of GDP) -2.1%
Budget (fiscal) balance (% of GDP) -7.4%
Interest rates (% on 10-year govt borrowing) 2.01%
Consumer spending 76.5%
Government 15.5%
Investment 14.6%
Exports 15.7%
Imports 14.62%
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2011
2011 for the US economy was a year of slow growth and fears of a double-dip recession, but
there were some more positive signs as 2011 came to a close. After months of wrangling and
fears of government meltdown, in August 2011 - President Obama and congressional leaders
reached a deal which agreed to raise the debt ceiling by US $400 billion immediately, whilstalso cutting government spending by hundreds of billions of dollars over the next decade In
the summer of 2011, the credit rating agency S&P downgraded US sovereign debt for the
first time - Standard & Poors downgraded US treasury debt from the highest rating of AAA
to AA+ although the main reasons for doing so appeared to be political rather than economic
namely the debt ceiling impasse in the summer which was eventually resolved.
Unemployment is high. At 9% there are 13.9 million unemployed, while the broader measure
of unemployed (U-6) is 25 million. While unemployment has been dropping at a snails pace,
jobs are not being created at a sufficient rate to substantially reduce unemployment. New
jobless claims have been hovering around the 400,000 per week for the entire year.
Real disposable income is falling. Personal savings have fallen from a post-crash high of
5.8% in June 2010 to 3.6% as of September 2011 because consumers are using savings to
fund consumption. GDP is static rather than growing, and the latest third-quarter boost will
likely not continue. It is likely that the third-quarter report will be revised downward.
Household debt ($13.9 trillion) is still historically very high and has not been substantially
reduced. U.S. sovereign debt is 100% of GDP ($15 trillion and growing). All governmentspending (federal, state, and local) constitutes 45.6% of GDP. The euro crisis will have a
substantial impact on the rest of the world, including the US. That is difficult to predict, but
well know very soon. According to recent data, the world is heading into recession in
almost all economies. The federal government is currently running a $1.3 trillion annual
deficit.
Unfunded liabilities for Social Security, Medicare, and prescription drug are $116.4 trillion
and growing. This does not include the pending problem with student loans (Sallie Mae) or
obligations to government-sponsored enterprises. The MF Global (MFGLQ.PK) problem is
indicative of a declining economy. It is likely that in a growing economy, MF Global would
have been able to ride out its crisis. In a declining economy, company weaknesses tend to be
revealed, as with Lehman. That creates market uncertainty. Oil prices have raised from $40 a
barrel post-crash to $110 a barrel in April 2011, and presently are at $97 a barrel. Such oil
price increases are associated with and often presage recessions.
http://dailycapitalist.com/2011/11/04/trouble-ahead-employment-inflation-and-the-fed/http://dailycapitalist.com/wp-content/uploads/2011/10/Real-Disposable-Income-Sept-2011.pnghttp://research.stlouisfed.org/fred2/data/PSAVERT.txthttp://research.stlouisfed.org/fred2/graph/?id=PSAVERThttp://dailycapitalist.com/wp-content/uploads/2011/10/Real-PCE-Sept-2011.pnghttp://dailycapitalist.com/2011/10/30/q3-gdp-is-a-head-fake/http://dailycapitalist.com/wp-content/uploads/2011/07/Household-Credit-Market-Debt-Outstanding-CMDEBT.pnghttp://dailycapitalist.com/wp-content/uploads/2011/11/Household-Debt-Q2-2011-Flow.pnghttp://dailycapitalist.com/wp-content/uploads/2011/11/Household-Debt-Q2-2011-Flow.pnghttp://www.usdebtclock.org/http://www.usdebtclock.org/http://www.usdebtclock.org/http://dailycapitalist.com/2011/11/15/core-meltdown-in-europe/http://dailycapitalist.com/2011/11/10/the-fallout-of-an-impending-worldwide-slowdown/http://dailycapitalist.com/2011/11/14/oecd-leading-indicators-point-to-slowdown/http://www.usdebtclock.org/http://www.usdebtclock.org/http://www.usdebtclock.org/http://finance.minyanville.com/minyanville?Page=QUOTE&Ticker=MFGLQ.PKhttp://finance.minyanville.com/minyanville?Page=QUOTE&Ticker=MFGLQ.PKhttp://www.usdebtclock.org/http://www.usdebtclock.org/http://www.usdebtclock.org/http://www.usdebtclock.org/http://dailycapitalist.com/2011/11/14/oecd-leading-indicators-point-to-slowdown/http://dailycapitalist.com/2011/11/10/the-fallout-of-an-impending-worldwide-slowdown/http://dailycapitalist.com/2011/11/15/core-meltdown-in-europe/http://www.usdebtclock.org/http://www.usdebtclock.org/http://www.usdebtclock.org/http://dailycapitalist.com/wp-content/uploads/2011/11/Household-Debt-Q2-2011-Flow.pnghttp://dailycapitalist.com/wp-content/uploads/2011/11/Household-Debt-Q2-2011-Flow.pnghttp://dailycapitalist.com/wp-content/uploads/2011/07/Household-Credit-Market-Debt-Outstanding-CMDEBT.pnghttp://dailycapitalist.com/2011/10/30/q3-gdp-is-a-head-fake/http://dailycapitalist.com/wp-content/uploads/2011/10/Real-PCE-Sept-2011.pnghttp://research.stlouisfed.org/fred2/graph/?id=PSAVERThttp://research.stlouisfed.org/fred2/data/PSAVERT.txthttp://dailycapitalist.com/wp-content/uploads/2011/10/Real-Disposable-Income-Sept-2011.pnghttp://dailycapitalist.com/2011/11/04/trouble-ahead-employment-inflation-and-the-fed/ -
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Key Figures for 2011
GDP +1.8%
CPI Inflation: 3.2%
Unemployment rate (Oct 2011) 9.0%
Current account balance (% of GDP) -3.1%
Budget (fiscal) balance (% of GDP) -9.0%
Interest rates (% on 10-year govt borrowing) 2.01%
Consumer spending 70.5%
Government 19.5%
Investment 12.6%
Exports 12.7%
Imports 15.9%
2012
Real gross domestic product (GDP) increased in 43 states and the District of Columbia in
2011, according to new statistics released today by the U.S. Bureau of Economic Analysis(BEA) that breakdown GDP by state. Durable-goods manufacturing, professional, scientific,
and technical services, and information services were the leading contributors to real U.S.
economic growth. U.S. real GDP by state grew 1.5% in 2011 after a 3.1% increase in
2010. Real U.S. GDP by metropolitan area increased 2.5% in 2010 after declining 2.5% in
2009, according to new statistics released today by the U.S. Bureau of Economic Analysis.
The economic growth was widespread as real GDP increased in 304 of 366 (83%)
metropolitan areas, led by national growth in durable-goods manufacturing, trade, and
financial activities. The cash pile has grown by about $1 trillion, currently adding up to over
$2 trillion. Given that annual US GDP is about $15.5 trillion, the corporate cash-stash is a
huge source of economic firepower. And thats not all at the same time, these same
corporations have an additional $2.4 trillion of trade receivables. Converting this to cash
doubles this already-substantial economic arsenal. Shortly after getting the weak GDP growth
numbers, we received yet another pitiful reading on employment growth. For a second
month, the economy produced fewer than 100,000 new jobs, and Mays unemployment rate
nudged up from 8.1% to 8.2%, an increase that is probably not statistically meaningful. After
a net overall gain in 2011 (+2.2%), driven by fiscal stimuli and jobs recovery, household
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consumption showed signs of easing at the end of 2011 and early 2012, with much lower
growth in spending (+1.4% year/year in January, compared to the long-term average of
3.3%). High unemployment (still coming down in only limited fashion) is partially to blame,
but more importantly, disposable personal income after taxes has grown at a paltry 0.6%
year/year rate while gasoline prices have also risen sharply.
Key Figures for 2012 (As of June)
GDP (June-2012) 15.094 (+1.7%)
CPI Inflation: (March-2012) 2.7%
Unemployment rate (May-2012) 8.2%%
Current account balance (% of GDP) 2.9%
Budget (fiscal) balance (% of GDP) 1.8%
Interest rates (% on 10-year govt borrowing) 2.01%
Consumer spending 74.5%
Government 17.5%
Investment 19.6%
Exports 16.7%
Imports 14.9%
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Reference
Income, Poverty, and Health Insurance Coverage in the United States: 2010.
Acharya, V.V. and M. Richardson (2010). Causes of the financial crisis, Critical Review,Economy. W.W. Norton and Company, New York
Astley, M., Giese, J., Hume, M. and C. Kubelec (2009).
Global imbalances and the financialBaily, M.N., Litan, R.E., and M.S. Johnson (2008). The origins of the financial crisisInitiative on Business and Public Policy at Brookings, Fixing Financial Series, Paper 3,November 2008.
Baker, G. (2007). Welcome to the Great Moderation, The Times, January 19.
Bezemer, D. (2009). No One Saw This Coming: Understanding Financial Crisis throughcrisis, Bank of England Quarterly Bulletin, 2009Q3.
Consumer Price Index Summary, Bureau of Labor Statistics, retrieved Updated monthly
Deloitte, Switching Channels: Global Powers of Retailing 2012, STORES, January 2012,
G20.
Garnaut, R. (with Smith, D.L.) (2009). The Great Crash of 2008. Melbourne University
Gross Domestic Product. 2011 Final Estimate, Bureau of Economic Analysis, retrieved April7, 2012
Obstfeld, M. and K. Rogoff (2009). Global imbalances and the financial crisis: products ofcommon causes, Paper prepared for the Federal Reserve Bank of San Francisco AsiaEconomic Policy Conference, Santa Barbara, CA, October 18-20 2009.
OECD (2011), "Country statistical profile: United States", Country statistical profiles: Keytables from OECD. doi: 10.1787/csp-usa-table-2011-1-en Press, Clayton, VIC.
Roubini, N., and B. Setser (2004). The US as a Net Debtor: The Sustainability of the USExternal Imbalance, mimeo, New York University
Stiglitz, J.E. (2010a). Freefall: America, Free Markets, and the Sinking of the World Vol. 21,No. 2-3. Washington, D.C.
World Bank (2010). Global Economic Prospects: Crisis, Finance, and Growth. World Bank,
Forbes.com". Forbes. November 15, 2011. Retrieved July 02, 2012.
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http://www.bbc.co.uk/news/world-us-canada-16761057
http://www.economics.gov.nl.ca/ER2010/TheEconomicReview2010.pdf
http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/united-states/?profile=economy
http://www.oecd.org/newpublicationdocuments/0,3764,en_33873108_33873886_1_1_1_23_1,00.html
http://www.bea.gov/international/index.htm
https://members.weforum.org/pdf/CSI/Global_Risks_2007.pdfhttps://www.cia.gov/library/publications/the-world-factbook/geos/us.html
http://money.cnn.com/2008/12/01/news/economy/recession/index.htmhttp://www.americanprogress.org/issues/2006/12/economic_review.htmlhttp://www.bbc.co.uk/news/world-us-canada-16761057http://www.economics.gov.nl.ca/ER2010/TheEconomicReview2010.pdfhttp://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/united-states/?profile=economyhttp://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/united-states/?profile=economyhttp://www.oecd.org/newpublicationdocuments/0,3764,en_33873108_33873886_1_1_1_23_1,00.htmlhttp://www.oecd.org/newpublicationdocuments/0,3764,en_33873108_33873886_1_1_1_23_1,00.htmlhttps://members.weforum.org/pdf/CSI/Global_Risks_2007.pdfhttps://www.cia.gov/library/publications/the-world-factbook/geos/us.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/us.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/us.htmlhttps://members.weforum.org/pdf/CSI/Global_Risks_2007.pdfhttp://www.oecd.org/newpublicationdocuments/0,3764,en_33873108_33873886_1_1_1_23_1,00.htmlhttp://www.oecd.org/newpublicationdocuments/0,3764,en_33873108_33873886_1_1_1_23_1,00.htmlhttp://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/united-states/?profile=economyhttp://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/country-profile/north-central-america/united-states/?profile=economyhttp://www.economics.gov.nl.ca/ER2010/TheEconomicReview2010.pdfhttp://www.bbc.co.uk/news/world-us-canada-16761057http://www.americanprogress.org/issues/2006/12/economic_review.htmlhttp://money.cnn.com/2008/12/01/news/economy/recession/index.htm -
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Appendix 1:
Country statistical profiles: Key tables from OECD - ISSN 2075-2288 - OECD 2011
Country statistical profile: United States 2011-2012
Unit 2003 2004 2005 2006 2007 2008 2009 2010 2011
Production andincome
Gross domesticproduct (GDP)
BlnUSDcurr.PPPs
11089.2
11812.3
12579.7
13336.2
13995.0
14296.9
14043.9
14582.4
e
15862.8e
GDP per capita USDcurrentPPPs
38 128 40 246 42 466 44 595 46 337 46 901 45 674 47 024 48 890
Gross nationalincome (GNI) percapita
USDcurrentPPPs
38 307 40 583 43 063 45 575 46 675 47 026 45 567 45 602 46 805
Householddisposable income
Annualgrowth
%
2.9 3.0 1.4 3.9 2.0 1.9 0.9 1.1 1.5
Economicgrowth
Real GDP growth Annualgrowth
%
2.5 3.6 3.1 2.7 1.9 -0.0 -2.7 2.9 e 3.0e
Net saving rate inhouseholddisposable income
% 3.8 3.4 1.5 2.5 2.1 4.2 6.2 5.8 6.4
Gross fixed capitalformation
% ofGDP
2.9 6.2 5.3 2.3 -1.4 -5.1 -15.5 -8.0 -4.6
Economic
structureReal value added:agriculture,forestry, fishing
Annualgrowth
%
12.2 2.9 11.6 -4.7 -10.8 8.9 6.5 6.7 5.2
Real value added:industry
Annualgrowth
%
1.9 7.5 0.8 3.0 3.7 -3.6 -5.5 -4.3 2.8
Real value added:services
Annualgrowth
%
1.9 1.5 1.1 1.7 1.5 2.3 -0.4 0.1 0.9
Governmentdeficits and debt
Government
deficit
% of
GDP
-5.0 -4.4 -3.3 -2.2 -2.9 -6.3 -11.3 -10.6 -8.7
Generalgovernment debt
% ofGDP
60.2 61.2 61.4 60.8 62.0 71.0 84.3 93.6 94.6
Generalgovernmentrevenues
% ofGDP
31.3 31.6 33.0 33.8 33.9 32.6 30.9 31.6 32.8
Generalgovernmentexpenditures
% ofGDP
36.3 36.0 36.2 36.0 36.8 39.0 42.2 42.3 40.2
Trade
Imports of goodsand services
% ofGDP
13.9 15.2 16.1 16.8 17.0 17.9 14.0 15.2 14.9
Exports of goodsand services
% ofGDP
9.4 10.0 10.4 11.0 11.9 12.9 11.2 12.2 13.5
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Goods tradebalance: exportsminus imports ofgoods
BlnUSD
-581.4 -707.4 -828.0 -882.0 -854.6 -864.9 -545.2 -689.4 -745.6
Imports of goods BlnUSD
1305.1
1525.3
1732.3
1919.0
2017.1
2164.8
1601.9
1966.5
2013.4
Exports of goods BlnUSD
723.7 817.9 904.3 1037.0
1162.5
1299.9
1056.7
1277.1
1314.2
Service trade
balance: exportsminus imports ofservices
Bln
USD
47.4 56.3 69.6 80.2 121.1 135.9 132.0 151.4 145.2
Imports ofservices
BlnUSD
244.3 282.4 302.5 336.7 367.2 398.3 370.3 394.2 345.6
Exports ofservices
BlnUSD
291.6 338.7 372.2 416.9 488.3 534.1 502.3 545.5 5648.0
Current accountbalance ofpayments
% ofGDP
-4.7 -5.3 -5.9 -6.0 -5.1 -4.7 -2.7 -3.2 -4.2
Foreign directinvestment (FDI)
Outward FDI
stocks
Mln
USD
.. .. .. .. 3 553
095
3 748
512
4 067
501
4 429
426
5245145.0
Inward FDI stocks MlnUSD
.. .. .. .. 2 345923
2 397396
2 441705
2 658932
2564157.0
Inflows of foreigndirect investment
MlnUSD
.. 316222
36 236 244922
414039
329080
303605
351350
354862.0
Outflows offoreign directinvestment
MlnUSD
.. 145966
112638
243151
221166
310091
158581
236227
251561.0
Prices andinterest rates
Inflation rate: allitems
Annualgrowth
%
2.3 2.7 3.4 3.2 2.9 3.8 -0.4 1.6 1.8
Inflation rate: allitems non foodnon energy
Annualgrowth%
1.5 1.8 2.2 2.5 2.3 2.3 1.7 1.0 0.9
Inflation rate: food Annualgrowth
%
2.1 3.8 1.9 1.8 4.2 6.4 0.5 0.3 0.2
Inflation rate:energy
Annualgrowth
%
12.2 10.9 16.9 11.2 5.5 13.9 -18.4 9.5 10.5
Producer PriceIndices (PPI):manufacturing
Annualgrowth
%
2.5 4.3 5.5 4.0 3.8 7.9 -4.9 5.0 5.0
Long-term interestrates
% 4.02 4.27 4.29 4.79 4.63 3.67 3.26 3.21 3.4
Purchasingpower andExchange rates
Purchasing powerparities
USDper
USD
1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.0
Exchange rates USDper
USD
1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.0
Indices of pricelevels
OECD= 100
103 98 98 100 97 94 98 97 98.0
Employment
Employment ratein population aged15-24
% 53.9 53.9 53.9 54.2 53.1 51.2 46.9 45.0 44.0
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Employment ratein population aged25-54
% 78.8 79.0 79.3 79.8 79.9 79.1 75.8 75.1 78.6
Employment ratein population aged55-64
% 59.9 59.9 60.8 61.8 61.8 62.1 60.6 60.3 61.2
Incidence of part-time employment
% 13.2 13.2 12.8 12.6 12.6 12.8 14.1 13.5 14.2
Self-employment
rate: total civilianemployment
% 7.6 7.6 7.5 7.4 7.2 7.0 7.1 7.0 7.2
Self-employmentrate, men: malecivilianemployment
% 8.8 8.9 8.8 8.6 8.4 8.3 8.4 8.3 84.0
Self-employmentrate, women:female civilianemployment
% 6.1 6.1 5.9 6.0 5.8 5.6 5.7 5.6 5.0
Unemployment
Unemploymentrate: total civilian
labour force
% 6.0 5.5 5.1 4.6 4.6 5.8 9.3 9.6 7.2
Unemploymentrate, men: malecivilian labourforce
% 6.3 5.6 5.1 4.6 4.7 6.1 10.3 10.5 8.4
Unemploymentrate, women:female civilianlabour force
% 5.7 5.4 5.1 4.6 4.5 5.4 8.1 8.6 5.2
Long-termunemployment:total unemployed
% 11.8 12.7 11.8 10.0 10.0 10.6 16.3 29.0 21.0
Last updated: 18 January 2012
.. Not available
| Break in series
e Estimated value
Note:e: Estimated value, |: Break
Source:OECD Factbook statistics. For explanatory notes, see OECD Factbook 2011-2012(DOI: 10.1787/factbook-2011-en)
doi: 10.1787/csp-usa-table-2011-1-en
http://dx.doi.org/10.1787/csp-usa-table-2011-1-enhttp://dx.doi.org/10.1787/csp-usa-table-2011-1-en