Expected US GDP Growth Rate Going Forward Essay Sample

In this case I am going to explain what GDP is, including all of its basic components. I will also show you the statistics of past years, current trends of its growth rate and expected future dynamics.
GDP or gross domestic product is aggregate market value of all the products and services that were produces within the boundaries of the country during particular period. Usually GDP is measured annually. Another term – GDP Per Capita is a good measure of standard of living and for calculating it we have to divide total GDP by number of population.
There are several methods for calculating the Gross Domestic Product but, probably the most popular is an expenditure approach. According to expenditure method GDP is equal to the sum of: private consumption, gross investment, government spending and net exports which is equal to exports minus imports. Private consumption represents total spending of citizens on products and services such as food, haircut and fuel. Gross investment includes as residential so non residential investments. Government spending represents all disbursements made by the government, for example buying military goods, funding NASA’s space flight and running social security and healthcare programs. Net exports are total exports minus total imports. This value can be less than zero sometimes and in such cases it will be subtracted.
According to the data of International Monetary Fund US GDP in year 2012 totaled $15.676 trillion. This figure makes US economy the largest national economy. GDP Per Capita was $49,601 in the same year. However, the growth rate was not very promising. It equaled 2.2% and if the growth rate is below 2% it almost cannot change the unemployment rate. The biggest part of GDP was generated by services and only about one fifth of it was generated by agriculture and industry.
According to the Bureau of Economic Analysis, for the last 3 years, US GDP growth rate is decreasing, but this is mostly caused by the economic crisis of 2008. Now we can see that in the last quarter of 2011, increase has been pretty substantial and equaled 4.1% and in the third quarter of 2012 the same figure was 3.1%. If we compare 2011 and 2012 than the GDP we can observe the increase in growth rate.
According to various economical forecasts, GDP growth rate in 2013 will be 1.6% and 2.4% in 2014. Probably such a low figure as 1.6% in 2013 is the result of -0.1 Growth (decrease) rate in the last quarter of 2012, which was caused by decrease in private inventory investments, increase in imports and decrease in general government spending. However, as we can see the forecast for 2014 is pretty good, and if it will come true, it can positively affect the unemployment rate and slightly decrease it. As this presentation is targeted to the chamber of commerce, I cannot omit the fact that with the increase in GDP growth rate, exports will increase, as well as production of goods. That will create and facilitate many business opportunities and it can be additional stimulus for businesses to work harder and generate more income.
In conclusion I would like to add that the real GDP growth rate is not the perfect indicator for forecasting future trends in different sectors of business but it can give a perfect overall picture of economics. Its growth level tends to increase, therefore the living standards are also increasing, unemployment will decrease and US will have chance to get to the top of the list of the countries that are best for doing business. Now it’s on the fourth place.