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.
You could be hit by a tax hike. Backers say it will save Social Security from financial collapse. Taxpayers can call it a cash grab. Regardless, people will have to fork over more cash for an increasingly lousy retirement plan..
Wealthiest Countries in the World Total national wealth isn’t as popular a metric as gross domestic product (GDP) per capita or other, more oft-referenced measures, but that doesn’t mean it’s irrelevant. National wealth is the total value of wealth possessed.
Are We In a Stock Market Bubble? One of the questions I get from my family and friends these days concerns the Dow 20,000: “The Dow has gone up so fast. Is there still time to get in?” A lot.
Jobs Report Sends Stock Market to New All-Time High For the last month of 2016, the U.S. labor market did not expand as much as economists anticipated. But the stock market still surged past its all-time high after Friday’s jobs.
U.S. Trade Deficit Widened in November In recent weeks, economic indicators have generally been painting a positive picture about the U.S. economy. But now, one indicator is saying that a particular segment of the economy might not be as strong.
Consumer Confidence Index Rises to Highest Level Since 2001 In recent months, there has been no shortage of indicators suggesting that the U.S. economy is doing great. The Consumer Confidence Index is the latest one to add to the list..
What Christmas Tree Sales Could Say About the Economy There are many indicators describing different aspects of the economy, such as gross domestic product (GDP), the unemployment rate, and the consumer price index (CPI). But here’s one “oddball” indicator that.
The Last Time This Happened, the Stock Market Crashed 56% The last time investors were this bullish, we saw a stock market crash of over 50%. Investor sentiment hit a nine-year high in November, according to the Wells Fargo/Gallup Investor.
U.S. Economy Had Its Strongest Quarterly Growth in Two Years Remember the sluggish growth in the U.S. economy in the first half of this year? Well, according to the latest estimate of a major indicator, things were much better in.
November Existing Home Sales Up 15.4% Year-Over-Year In November, the month before the rate hike, U.S. existing home sales reached a new post-crisis high. On Wednesday, December 21, the National Association of Realtors (NAR) reported that total existing home sales.