The U.S. is the world’s largest national economy. In 2013, the U.S. reported gross domestic product (GDP) of $16.8 trillion, or 22.4% of global GDP. China was a distant second at $9.2 trillion. Japan’s economy was the third largest in 2013 at $4.9 trillion, with Germany ($3.6 trillion) and France ($2.7 trillion) rounding out the top five.
The U.S. is also the second largest economy by region. In 2013, U.S GDP of $16.80 trillion was just slightly behind the entire European Union at $17.35 trillion.
As the world’s biggest national economy the U.S. is also its economic engine. That’s because the U.S. is the largest consumer market in the world. In 2013, consumer spending accounted for 71% of the U.S. economy.
As goes the U.S., so goes the global economy. Since the stock market crashed in 2008, U.S. economic growth has been weak. In 2008, the U.S. reported negative GDP of -0.03%; in 2009, it slipped further to -2.8%. Since then, the U.S. economy has experienced uneven growth. Most recently, in 2013, the U.S. reported GDP growth of 1.9%.
Going forward, the International Monetary Fund (IMF) has cut its outlook for global economic growth, saying there are limits to the United States’ ability to shoulder the world’s economy on its own. Before the financial crisis, the U.S. routinely advanced at around 3.0% annually. For 2014, the IMF expects GDP to grow 2.2% and in 2015 it expects the U.S. economy to advance 3.1%.
As the Greek debt crisis winds down, world markets are reverting to business as usual without acknowledging a fundamental truth: Greece was only the beginning. Many countries have used nothing but debt to fuel their growth, laying the groundwork for a mega-sized economic collapse.A key study by the International Monetary Fund (IMF). Read More
If you thought what’s happening in Greece could never happen here, think again. While government officials try to soothe investors’ fears with a lot of happy talk, new indicators suggest the United States could be on the verge of an economic collapse. At least, that’s the view of renowned investor Peter Schiff.“What’s happening. Read More
The National Association of Realtors’ Housing Affordability Index has dropped 12% in the first five months of 2015. (Source: National Association of Realtors, last accessed July 16, 2015.)In January, the qualifying income to get a mortgage for an existing median-priced home in the U.S. was $36,576. In May, buying a median-priced. Read More
Former Texas Republican Congressman and three-time Republican presidential nominee Ron Paul discusses the latest inflation numbers in June, as well as the likelihood of a rate hike. (Source: Inflation On The Rise, last accessed July 16, 2015.)In June, the Purchasing Managers Index (PMI), a leading indicator of inflation, increased. Read More