The US GDP is defined in three ways: total expenditure, value added to input materials, and sum of everyone’s income. The US has the largest GDP in the world, with a per capita GDP of $46,000 USD. The economy is diverse, with primary industries including consumer goods, mining, and defense. Annual GDP growth is about 10%, lower than the global average. The US has a trade deficit and an extreme gross external debt of $10.6 trillion. The government also has long-term liabilities through unfunded Medicaid, Social Security, and Medicare obligations.
The GDP (Gross Domestic Product) of the United States, like the GDP of any nation, can be defined in three different ways, all of which are similar. First, it is the total expenditure on all goods and services produced by the nation over a one-year period. Second, it can be defined as the value added to input materials at each stage of production by all industries in the United States, plus taxes, minus government subsidies. The third definition is the sum of everyone’s income in the country. A nation’s GDP indicates its level of financial wealth and economic productivity.
The US GDP is the largest in the world, beating the second largest, Japan, by a factor of more than three. Around 2003, US annual GDP exceeded $10 trillion US dollars (USD) in 2009 dollar terms. In 2007, it was estimated to be worth $13.8 trillion. This translates into a per capita GDP of approximately $46,000 USD per person of working age in 2007, which ranks tenth in the list of all countries. In 2008, about 72% of economic activity in the United States came from consumers, the rest from industry and government. Primary industries are very diverse and include consumer goods, lumber, mining, motor vehicles, aerospace, petroleum, telecommunications, chemicals, steel, electronics, food processing, and defense.
US annual GDP growth is about 10% annually, slightly lower than the global average, which was 11.99% in 2007. In contrast, China’s annual GDP growth in 2007 was 22.59% . In 2007, Armenia had a GDP growth of 43.69%, the highest in the world. The US economy comprises a workforce of approximately 150 million, or about half of the population, with an employment rate ranging between 3% and 8%. In 2007, exports were $1.149 trillion, while imports were $1.968 trillion. The difference between exports and imports is known as the trade deficit.
Despite its great wealth, the US government has an extreme gross external debt, about $10.6 trillion at the end of 2008. This equates to about 65% of GDP, or $37,316 USD per capita. Conversely, entry into the Economic and Monetary Union of the euro requires countries to have a gross public debt of less than 3% of GDP. In addition to its external debt obligations, the U.S. government also has approximately $59.1 trillion in long-term liabilities through unfunded Medicaid, Social Security, and Medicare obligations, or $516,348 USD per household.
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