Comparing the growth rates of GDP components including consumption (C), investment (I), government spending (G), net exports (X), and Inventories
In the fourth quarter of 2013, the real gross domestic product increased at an annual rate of 3.2 percent, and by 4.1 percent in the third quarter. The increase in the gross domestic product in the fourth quarter significantly reflected the positive contributions from the personal consumption expenditures, non-residential fixed investments, exports, local and state government spending, and private inventory investment that were partially counterbalanced with the negative contributions from federal government spending (US Department of Commerce. The private inventory investment decelerated, the federal government spending decreased, the residential fixed investment declined, and the local and state government spending decreased in this quarter. Additionally, the net exports increased resulting in the increased gross domestic product. The real domestic product therefore increased due to the interrelated interaction of these GDP components in the United States.
Comparing the GDP, GDP per capita, and overall well-being in United States and China
The gross domestic product of the United States currently stands at 15.56 trillion USD against Chinese 8.2227 trillion USD. Over the last 15 years, the latter’s gross domestic product growth rate has been very slow. However, in the past five years, it has recorded the highest growth rate at 5.6 percent against United States 3.2 percent. Considering the Chinese population, which is approximated at 1.351 billion, the GDP per capita is very low at 6,091.01 USD against 49,965.27 USD of the United States (Morrison, 2013). According to research surveys on the well-being in these two countries, most people in the United States comprise the middle class and the poverty level in the country is very low. However, China has reduced the poverty rates by about 71 percent in the last three decades. Nevertheless, the living standards in the latter still lag behind the former country.
References:
United States Department of Commerce: Bureau of Economic Analysis. Web January 30, 2014. Retrieved from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
Morrison, W. M. (2013). Measuring the Size of China's Economy. Congressional Research Service: Report, 8-12.
