Glance at US Economy: Stairway to Heaven or Highway to Hell?
The US is the world`s leading economy and a dominant global military power. The US has been the world`s leading economy for a very long time. But since the last decade, China`s economy has started to show great steady growth. China has already surpassed the US in terms of Purchasing power parity (PPP) which is the total value of goods and services produced by a nation excluding the currency conversion. Meanwhile, armed with the strongest currency worldwide (USD), the US has maintained a share range of 21.9% to 35.8% of the World GDP for 50 years. No country did come close to this rate, none but for China with 18% share of Global GDP. Let`s review the below chart regarding nominal GDP for both nations across the past 10 years, noting that China suffered COVID19 outbreaks in 2022 where FY2022 GDP is below 5% of the planned growth.
So we decided to take a Glance at the US economy, especially since a lot of crises are taking place such as debt ceiling, SVB bankruptcy, Borders problems and political friction. The US Economy is the largest economy; It would take hundreds of pages to discuss every economic parameter in detail. That’s why here we decided on focusing on some vital macro-economic indicators that should be important to both US citizens and foreigners. These indicators will reflect on great pillars of the US economy such as foreign investments, labor, prices, money, trade, government, debt and national production. The below chart present 7 vital indicators:
Each of these indicators shall be discussed thoroughly in separate articles to provide historical and analytic understanding of each of them. Here is a clarification for each of the above indicators:
·????????Gross Domestic Product GDP current dollar: is the total value of all the finished goods and services produced in a specific time period by the current prices despite inflation.
·????????The Consumer Price Index (CPI): is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Foreign Trade Deficit: is the deficit between country imports and exports
Unemployment rate: is the percentage of people in the labor force not employed.
Inflation: is the rate of increase of price over a given period of time.
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Interest rate: is the official rate issued by the federal bank regarding the interest acquired by the borrower after one year.
Debt: is the accumulated deficit in the government balance across the years.
References:
Stay put for the upcoming editions of the US Economy Series focusing on each indicator in the following articles of this series: