An economy is the amount of money made and used in a particular country or region. The United States is the world’s biggest economy, accounting for roughly 16% of the global economy. The European Union, which is made up of 27 European countries, is the world’s biggest economic region, accounting for 17% of the world’s economy.
Economics look at a number of factors when considering the relative strength of an economy. One of the main considerations is the gross domestic product (GDP). GDP is a measure of all the goods and services produced in an economy and it is generally calculated on a quarterly and annual basis.
Sustained economic growth positively impacts income, employment levels, consumption, and the overall standard of living. In a strong or growing economy, businesses increase their sales, hire more people, are more confident about the future, and invest more in their companies. Consumers earn more, are more optimistic about the future, and spend more.
In the years leading up to the 2008 financial crisis, the U.S. reported annual GDP growth of around three percent. Since the 2008 and 2009 recession, U.S. GDP has been more subdued at around 2.2%.
When considering the strength of an economy, economists also look at inflation, interest rates, jobs growth, consumer demand, population growth, standard of living, and social and political factors.
By measuring this data on an annual basis, economists can determine if an economy is expanding or contracting. An economic analysis can also help investors get a general idea of market conditions and possible trends.
Why I LOVE Bear Markets A little while ago, I learned a new word: “rekt.” My colleague and good pal Stephen Karmazyn tells me the word comes from the cryptocurrency community. Shortened from the word “wrecked,” you might say that.
Election 2018 Is Bad for Stocks For election 2018, American voters have chosen a divided government. The Republicans will control the Senate. The Democrats will control the House. That doesn’t happen often. We have only seen the House majority switch.
Surprising Reason to Be Worried Wall Street analysts have each started to release a stock market outlook for 2019, and they have good reason to be excited. Today’s unemployment rate is 3.7%, according to the U.S. Department of Labor. This.
Should This Indicator Have Investors Worried? One of the most common questions that family and friends ask me concerns the coming trade war and potential stock market crash in 2018. “Countries around the world are putting up trade barriers,” one.
Could This Trigger a Stock Market Crash? A U.S. government shutdown could trigger the next stock market crash, at least according to the “Chicken Littles” in the media. “Uncle Sam” hit the $19.8-trillion debt limit back in March. Since then,.
This Should Keep You Up At Night In 2004, Clifford Dawg got his first credit card. Normally, such an event would hardly be newsworthy. Clifford, though, was only two years old at the time. And a dog. The pug’s owner,.
Traders Terrified of War with North Korea The U.S. could go to war with North Korea. That’s great news for necessitous newsrooms. They could run a few scare headlines, good for some extra pennies of ad revenue. Traders seemed worried.
The Hoover Dam Didn’t Burst The Hoover Dam didn’t burst, according to emergency officials on Thursday. Millions of gallons of water passed safely through the 726-foot structure, generating clean power for thousands of nearby residents. The dam did not collapse.
12%+ Yields From Trump’s Tax Holiday We don’t have all the info yet. For the most part, insiders have stayed tight-lipped. The only details come from a short memo and a “leaked” White House photo. But our research shows that.
This Market Has Triple-Digit Upside Today, I’ll get straight to the point. The last time this happened, European stocks soared 172%. Over the following months, they beat the returns of U.S. equities two-to-one. Now, we could see the same thing.