GDP Essay

According to IMF, GDP of the USA, as of 2016, is estimated to be $ 18.697 trillion, GRP of China - to reach $ 12.254 trillion, India - $ 2.18 trillion, and Turkey - $ 1.508 trillion.
Having analyzed the dynamics of GDP of these four countries for the last 40 years, the natural tendency of its growth in all countries can be noticed. Still, in spite of the dynamic development of the countries, there have been serious crises in the economies of all these states. It should be noted that to overcome economic crisis and restore GDP growth is better for any economy. The faster the crisis is overcome, the higher is the household income, employment, output, revenues and dynamic development of the country.
In analyzing the constituent elements of these countries` GDPs, it should be noted that the share of final consumption spending of households is from 60 to 70% in all the countries analyzed. In the US, the share of this indicator in its GDP has never fell below the level of 61% since 1975. As we know, a low indicator of personal consumption expenditure in the total GDP is an evidence of serious difficulties in the economy. In the economies analyzed, there were no such instances.
The increase of the share of spending on durable goods was noticed which demonstrates the stability of the economy and reduction of the cost of credit, as most of these products are costly and require the use of consumer credit. In the US, the share of consumer spending on durable goods increased from 9 to 15% over the past 20 years. This caused a decline in the share of consumer spending on goods of short-term use from 31 to 29% respectively. An important role of services in the amount of consumer spending should be noted, which includes health care, insurance, transportation, legal services, mortgage lending, and others. The growth of the share of expenditure in this area is currently at the level of 58% in the US and the maximum value of 61 % was in 1991.
Another indicator of economic development is gross domestic investment of companies, which depend mainly on the prevailing economic outlook. The share of this figure in the amount of US GDP has increased over the past 40 years from 10 to 17%.
When analyzing the indicator of the share of public expenditure in the total GDP, it can be noted about similar trends in the United States and other countries analyzed. The share of these expenses in 2007 amounted to approximately 18% in the US.
The last figure, which is taken into account when calculating the GDP, is the net exports of goods and services, which is calculated as the difference between exports and imports. A negative value indicates deficit of the balance of payments and, thus, reduces the amount of GDP. The highest export and import volumes were achieved in 2007 and accounted for 12% of exports and 17% of imports ($1.4 and $2 trillion respectively). Since the 80s, the US imports more than it exports, and thus it reduces the amount of GDP to a negative value of net exports.
Trade relations of any country with other countries make up a significant part of all economic activity in the country. Minor changes in the volume of exports or imports may significantly affect gross domestic product, which is especially important for three other states, apart from the USA, in connection with their more vulnerable economies.