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.
Consumer prices rose in June for the fourth straight month, according to the latest reading on the cost of living by the government. On Friday, the Bureau of Labor Statistics released its Consumer Price Index (CPI) data for the month.
The U.S. economy didn’t add that many jobs in May. Now, a new report just confirmed the month’s weakness in the labor market. On Tuesday, July 12, the Bureau of Labor Statistics released the latest “Job Openings and Labor Turnover.
After a disappointing report last month, the Bureau of Labor Statistics is finally injecting some hope into the markets. On Friday, July 8, the U.S. Bureau of Economic Analysis (BEA) released its latest jobs report, which showed that the U.S..
ADP Shows Labor Market Improving One day ahead of the official July jobs report, Automatic Data Processing (ADP) released its estimate for the number of jobs added. According to ADP, private firms in the U.S. added 172,000 jobs in June.
Trade Gap Widens by 10.1% In May of this year, the United States saw its trade deficit grow by the largest margin since August of 2015. The gap between imports and exports widened by 10.1%. (Source: “Trade Deficit in U.S..
Mark Carney Loosens Lending Restrictions Earlier this week, the Bank of England (BOE) eased lending conditions to soften the fallout from the Brexit. Britain’s vote to leave the European Union has put the BOE’s governor, Mark Carney, under pressure to.
Santander and Deutsche Bank Get Rejected The Federal Reserve recently reviewed the capital distribution plans from 33 of the biggest banks in the U.S. The Fed only rejected two. (Source: “Federal Reserve releases results of Comprehensive Capital Analysis and Review.
Spending on the Rise Personal spending continued its second-quarter rebound with a 0.4% rise in May, showing that at least one engine in the U.S. economy is firing. Consumer dollars are one of the driving forces behind economic growth. (Source:.
Fitch and S&P Cut U.K. Rating Two of the world’s biggest rating agencies have downgraded the United Kingdom in the aftermath of the Brexit. The cuts were widely expected after the majority of Britain voted to leave the European Union..
New Data Shows Stronger U.S. Economic Growth According to new data, U.S. economic growth for the first quarter of 2016 was better than previously thought. The country’s gross domestic product (GDP) grew at 1.1%, rather than the 0.8% initially reported..