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.
Slower Revenue, Increasing Spending Fueling Deficit The U.S. budget deficit for the fiscal year 2016 is expected to surpass the earlier forecast and should settle at 3.2% of the gross domestic product, according to the Congressional Budget Office’s (CBO’s) latest.
Markit Flash PMI at 52.1 in August, Down from 9-Month High in July July was a solid month for the U.S. manufacturing sector. An advance estimate from IHS Markit suggests that expansion continued in August, albeit at a slower pace..
Sales of New Single-Family Houses Reach Highest Level Since 2007 Recent economic indicators have been saying positive things about the U.S. economy. New home sales is the latest one to add to that list. On August 23, the U.S. Department.
Wealth Inequality on the Rise A tiny fraction of Americans controls a majority of the nation’s wealth, according to a recent report from the U.S. Congressional Budget Office (CBO). More specifically, the bottom half of the population collectively owns a.
Inflated Equity Prices Helping Bond Upgrades Inflated equity valuations may threaten a relative stability in the credit markets amid depressed corporate bond yields and extraordinarily low interest rates, according to Moody’s Analytics research. The S&P 500 and the Dow Jones.
Only 3 Houses Sold in West Vancouver In a sharp reversal from earlier trends, the Vancouver real estate market plummeted through the month of August. The Canadian city has been a hotspot for home prices in recent years, but it.
Retail Earnings Suggest Consumers Are Feeling Good Target Corporation (NYSE:TGT) blamed U.S. consumers when it lowered its guidance for the year, but the Chief Financial Officer of Wal-Mart Stores, Inc. (NYSE:WMT) is saying something else entirely. Plenty of other retailers.
Manufacturing Index Returns to Positive Territory Manufacturing activity in the U.S. Mid-Atlantic region rebounded in August, according to a survey by the Federal Reserve Bank of Philadelphia. On Thursday, the Philadelphia Fed released its Manufacturing Business Outlook Survey for the.
Drops in Insurance Claims Signal Strong Job Market New York, NY — The number of Americans seeking unemployment benefits in new applications dropped last week, a trend in line with strengthening job market conditions. Initial claims for unemployment benefits, a.
Luxury Apartments Are Lying Empty For the average American, finding a reasonably priced apartment can seem nearly impossible at times. However, a recent report shows that some apartments, particularly at the luxury end of the spectrum, are absolutely starved for.