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.
Economic Optimism Index at 48.4 New York, NY — There are several measures for consumer confidence in the U.S. This time, it’s the Economic Optimism Index released by the TechnoMetrica Institute of Policy and Politics (TIPP). On.
Inventory to Sales Ratio at 1.33 New York, NY — U.S. economic growth didn’t seem to go that well in the second quarter. But now, one indicator is saying that second-quarter GDP could be better than the first estimate. On.
Monetary Easing Speculations, Political Progress Fuel Rally New York, NY — Spanish government bonds rose today, taking the yield on the benchmark 10-year debt below one percent for the first time. The rally is fueled by the monetary easing expectations.
LMCI Advanced One Point in July New York, NY — By now, you have probably heard that July was a good month for the U.S. labor market. The Federal Reserve’s own job market indicator just confirmed that. On Monday, the.
Friday’s Strong Job Data Bolster Economic Outlook New York, NY — The U.S. dollar rose against some major currencies today as last week’s strong job data bolstered the economic prospects in the world’s largest economy. The WSJ Dollar Index, which.
Rapidly Aging Workforce Slowing Growth New York, NY — Rapid retirements deprive companies of critical experience and knowledge, which undermines productivity across the entire economy and hurts economic growth, according to a new study by Nicole Maestas of Harvard University.
Higher Consumer Demand, Energy Cost Fuel Imports New York, NY — The U.S. trade deficit rose to a 10-month high in June as consumer demand and higher energy prices fueled imports, according to data released by the U.S. Department of.
Aging Population Could Impact Worker Productivity New York, NY — Many have pointed out the population aging issue in the U.S. economy. Now, economists can use empirical evidence to quantify the impact of an aging population on economic growth. In.
Jobless Rate Stays Steady at 4.9% New York, NY — U.S. employment increased more than expected in July and wages picked up, signaling that the economy is picking up steam and raising the probability of an interest rate increase in.
Jobless Claims Up Slightly, but Point to Steady Hiring New York, NY — On Thursday, August 4, the U.S. Labor Department released its weekly report on unemployment insurance claims. It showed that in the week ending July 30, the advance.