- In December 2020, the nominal GDP of the United States was 5,373.7 billion dollars, up from 5,292.6 billion dollars the previous quarter.
- Nominal GDP in the United States is updated quarterly and is accessible from March 1947 to December 2020, with an average value of 962.8 billion dollars.
- The data ranged from a high of 5,436.8 USD billion in December 2019 to a low of 60.8 USD billion in March 1947.
What is the current year’s nominal GDP?
The GDP Deflator method necessitates knowledge of the real GDP level (output level) as well as the price change (GDP Deflator). The nominal GDP is calculated by multiplying both elements.
GDP Deflator: An In-depth Explanation
The GDP Deflator tracks pricing changes in a country’s economy over time. It will start with a year in which nominal GDP equals real GDP and multiply it by 100. Any change in price will be reflected in nominal GDP, causing the GDP Deflator to alter.
For example, if the GDP Deflator is 112 in the year after the base year, it means that the average price of output increased by 12%.
Assume a country produces only one type of good and follows the yearly timetable below in terms of both quantity and price.
The current year’s quantity output is multiplied by the current market price to get nominal GDP. The nominal GDP in Year 1 is $1000 (100 x $10), and the nominal GDP in Year 5 is $2250 (150 x $15) in the example above.
According to the data above, GDP may have increased between Year 1 and Year 5 due to price changes (prevailing inflation) or increased quantity output. To determine the core cause of the GDP increase, more research is required.
What will the United States’ nominal GDP be in 2021?
Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both products and services contributed to the increase in exports. Consumer products, industrial supplies and materials, and foods, feeds, and beverages were the biggest contributions to the growth in goods exports. Travel was the driving force behind the increase in service exports. The rise in PCE was mostly due to an increase in services, with health care, recreation, and transportation accounting for the majority of the increase. The increase in nonresidential fixed investment was mostly due to a rise in intellectual property items, which was partially offset by a drop in structures.
The reduction in federal spending was mostly due to lower defense spending on intermediate goods and services. State and local government spending fell as a result of lower consumption (driven by state and local government employee remuneration, particularly education) and gross investment (led by new educational structures). The rise in imports was mostly due to a rise in goods (led by non-food and non-automotive consumer goods, as well as capital goods).
After gaining 2.3 percent in the third quarter, real GDP increased by 6.9% in the fourth quarter. The fourth-quarter increase in real GDP was primarily due to an increase in exports, as well as increases in private inventory investment and PCE, as well as smaller decreases in residential fixed investment and federal government spending, which were partially offset by a decrease in state and local government spending. Imports have increased.
In the fourth quarter, current dollar GDP climbed 14.3% on an annual basis, or $790.1 billion, to $23.99 trillion. GDP climbed by 8.4%, or $461.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases climbed 6.9%, compared to 5.6 percent in the third quarter (table 4). The PCE price index climbed by 6.5 percent, compared to a 5.3 percent gain in the previous quarter. The PCE price index grew 4.9 percent excluding food and energy expenses, compared to 4.6 percent overall.
Personal Income
In the fourth quarter, current-dollar personal income climbed by $106.3 billion, compared to $127.9 billion in the third quarter. Increases in compensation (driven by private earnings and salaries), personal income receipts on assets, and rental income partially offset a decline in personal current transfer receipts (particularly, government social assistance) (table 8). Following the end of pandemic-related unemployment programs, the fall in government social benefits was more than offset by a decrease in unemployment insurance.
In the fourth quarter, disposable personal income grew $14.1 billion, or 0.3 percent, compared to $36.7 billion, or 0.8 percent, in the third quarter. Real disposable personal income fell 5.8%, compared to a 4.3 percent drop in the previous quarter.
In the fourth quarter, personal savings totaled $1.34 trillion, compared to $1.72 trillion in the third quarter. In the fourth quarter, the personal saving rate (savings as a percentage of disposable personal income) was 7.4 percent, down from 9.5 percent in the third quarter.
GDP for 2021
In 2021, real GDP climbed 5.7 percent (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major subcomponents of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
PCE increased as both products and services increased in value. “Other” nondurable items (including games and toys as well as medications), apparel and footwear, and recreational goods and automobiles were the major contributors within goods. Food services and accommodations, as well as health care, were the most significant contributors to services. Increases in equipment (dominated by information processing equipment) and intellectual property items (driven by software as well as research and development) partially offset a reduction in structures in nonresidential fixed investment (widespread across most categories). The rise in exports was due to an increase in products (mostly non-automotive capital goods), which was somewhat offset by a drop in services (led by travel as well as royalties and license fees). The increase in residential fixed investment was primarily due to the development of new single-family homes. An increase in wholesale commerce led to an increase in private inventory investment (mainly in durable goods industries).
In 2021, current-dollar GDP expanded by 10.0 percent, or $2.10 trillion, to $22.99 trillion, compared to 2.2 percent, or $478.9 billion, in 2020. (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed by 3.9 percent, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, compared to 1.2 percent in the previous quarter. The PCE price index climbed 3.3 percent excluding food and energy expenses, compared to 1.4 percent overall.
Real GDP rose 5.5 percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a 2.3 percent fall from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases grew 5.5 percent, compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index climbed by 5.5 percent, compared to 1.2 percent for the year. The PCE price index increased 4.6 percent excluding food and energy, compared to 1.4 percent overall.
Source Data for the Advance Estimate
A Technical Note that is issued with the news release on BEA’s website contains information on the source data and major assumptions utilized in the advance estimate. Each version comes with a thorough “Key Source Data and Assumptions” file. Refer to the “Additional Details” section below for information on GDP updates.
In 2019, what is the nominal GDP?
Personal consumption expenditures (PCE), federal government spending, state and local government spending, residential fixed investment, and exports all contributed to the increase in real GDP in the fourth quarter, which was partially offset by negative contributions from private inventory investment and nonresidential fixed investment. Imports, which are deducted from GDP calculations, declined (table 2).
The fourth quarter’s real GDP growth was the same as the third. A drop in imports, an increase in government spending, and a lesser drop in nonresidential investment were countered by a greater drop in private inventory investment and a slowdown in PCE in the fourth quarter.
In the fourth quarter, current dollar GDP climbed by 3.6 percent, or $191.7 billion, to $21.73 trillion. GDP climbed by 3.8 percent, or $202.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases grew 1.5 percent, compared to 1.4 percent in the third quarter (table 4). The PCE price index climbed by 1.6 percent, compared to 1.5 percent previously. The PCE price index grew 1.3 percent excluding food and energy expenses, compared to a 2.1 percent increase overall.
In the fourth quarter, current-dollar personal income climbed by $148.7 billion, compared to $162.6 billion in the third quarter. Decelerations in proprietors’ income, personal current transfer receipts, and personal dividend income were somewhat offset by a smaller fall in personal interest income and an acceleration in compensation, resulting in the lower increase (table 8).
In the fourth quarter, disposable personal income climbed by $127.4 billion, or 3.1 percent, compared to $179.5 billion, or 4.5 percent, in the third quarter. Real disposable personal income climbed by 1.5 percent, compared to 2.9 percent in the previous quarter.
In the fourth quarter, personal savings totaled $1.29 trillion, down from $1.30 trillion in the third quarter. In the fourth quarter, the personal saving rate personal savings as a proportion of disposable personal income was 7.7%, down from 7.8% in the third quarter.
In 2019, real GDP increased by 2.3 percent (from the previous year’s annual level to the current year’s annual level), compared to 2.9 percent in 2018. (table 1).
PCE, nonresidential fixed investment, federal government expenditure, state and local government spending, and private inventory investment all contributed to the increase in real GDP in 2019, which was partially offset by negative contributions from residential fixed investment. Imports have risen (table 2).
The slowdown in real GDP in 2019 compared to 2018 was mostly due to slower nonresidential fixed investment and PCE, as well as a drop in exports, which were partially offset by faster state and local government spending. Imports grew at a slower pace in 2019 than in 2018.
GDP in current dollars climbed 4.1 percent, or $848.8 billion, to $21.43 trillion in 2019, compared to 5.4 percent, or $1,060.8 billion, in 2018. (table 1 and table 3).
In 2019, the price index for gross domestic purchases climbed by 1.6 percent, compared to 2.4 percent in 2018. (table 4). The PCE price index climbed by 1.4 percent, compared to a 2.1 percent increase in the previous quarter. The PCE price index grew 1.6 percent excluding food and energy expenses, compared to 1.9 percent overall (table 4).
Real GDP increased by 2.3 percent from the fourth quarter of 2018 to the fourth quarter of 2019. This is compared to a 2.5 percent gain in 2018. The price index for gross domestic purchases grew 1.5 percent in 2019, as assessed from the fourth quarter of 2018 to the fourth quarter of 2019. This is compared to a 2.2 percent gain in 2018. The PCE price index climbed by 1.5 percent, compared to 1.9 percent in the previous quarter. The PCE price index grew 1.6 percent excluding food and energy, compared to 1.9 percent overall (table 6).
A Technical Note that is issued with the press release on BEA’s Web site contains information on the source data and important assumptions utilized for unavailable source data in the advance estimate. Each version comes with a thorough “Key Source Data and Assumptions” file. See the “Additional Information” section below for more information on GDP updates.
What was the nominal GDP of the economy in the first year?
a) Year 1 nominal GDP = $20,000 + $10,000 = $300,000. Year 2 nominal GDP = $25,150 + $1,100 = $50,700. b) Using year 1 as the base year, both years’ production must be valued at year 1 prices. Year 1 is the base year, and real GDP equals nominal GDP of $30,000.
What’s the difference between nominal GDP and PPP GDP?
Macroeconomic parameters are crucial economic indicators, with GDP nominal and GDP PPP being two of the most essential. GDP nominal is the more generally used statistic, but GDP PPP can be utilized for specific decision-making. The main distinction between GDP nominal and GDP PPP is that GDP nominal is the GDP at current market values, whereas GDP PPP is the GDP converted to US dollars using purchasing power parity rates and divided by the total population.
What is the GDP of the United States in 2022?
According to our econometric models, the US GDP will trend around 22790.00 USD Billion in 2022 and 23420.00 USD Billion in 2023 in the long run.
In 2020, what was the nominal GDP?
The rise in exports was mostly due to a rise in goods (led by industrial supplies and materials). Nonresidential fixed investment increased as a result of increases in all components, headed by equipment. Spending on services (headed by health care) accounted for more than half of the growth in PCE; spending on products fell (led by food and beverages). The rise in residential fixed investment was mostly due to new single-family house construction. The rise in private inventory investment was principally driven by increases in manufacturing and wholesale trade, which were partially offset by a drop in retail commerce.
In the fourth quarter, current dollar GDP climbed by 6.0 percent on an annual basis, or $309.2 billion, to $21.48 trillion. GDP climbed by 38.3 percent, or $1.65 trillion, in the third quarter (tables 1 and 3). The Key Source and Data Assumptions file on BEA’s website has more information on the source data that underpins the estimates.
In the fourth quarter, the price index for gross domestic purchases grew 1.7 percent, compared to 3.3 percent in the third quarter (table 4). The PCE price index rose 1.5 percent in the fourth quarter, compared to 3.7 percent in the previous quarter. The PCE price index climbed 1.4 percent excluding food and energy expenses, compared to 3.4 percent overall.
In the fourth quarter, current-dollar personal income fell $339.7 billion, compared to $541.5 billion in the third quarter. Personal current transfer receipts (notably, government social benefits related to the winding down of CARES Act pandemic relief programs) and proprietors’ income, which were partly offset by increases in compensation and personal income receipts on assets, more than offset the decrease in personal income (table 8).
In the fourth quarter, disposable personal income fell $372.5 billion, or 8.1 percent, compared to $638.9 billion, or 13.2 percent, in the third quarter. Real disposable personal income fell by 9.5 percent, compared to 16.3 percent in the previous quarter.
In the fourth quarter, personal savings totaled $2.33 trillion, compared to $2.83 trillion in the third quarter. In the fourth quarter, the personal saving rate (savings as a proportion of disposable personal income) was 13.4 percent, down from 16.0 percent in the third quarter. “Effects of Selected Federal Pandemic Response Programs on Personal Income” provides more details on the elements that influence quarterly personal income and savings.
In 2020, real GDP fell 3.5 percent (from the 2019 annual level to the 2020 annual level), compared to a 2.2 percent growth in 2019. (table 1).
PCE, exports, private inventory investment, nonresidential fixed investment, and state and local government decreased real GDP in 2020, partially offset by increases in federal government spending and residential fixed investment. Imports are down (table 2).
A drop in services more than compensated for the decrease in PCE in 2020. (led by food services and accommodations, health care, and recreation services). The drop in exports was due to a drop in both services (driven by travel) and goods (mainly non-automotive capital goods). Private inventory investment fell as a result of broad losses in retail trade (mostly auto dealers) and wholesale trade (mainly durable goods industries). Structures (dominated by mining exploration, shafts, and wells) and equipment (headed by transportation equipment) decreased in nonresidential fixed investment, which was partly offset by an increase in intellectual property products (more than accounted for by software). The drop in state and local government spending corresponded to a drop in consumer spending (led by compensation).
The increase in federal spending was due to an increase in non-defense consumer spending (led by an increase in purchases of intermediate services that supported the processing and administration of Paycheck Protection Program loan applications by banks on behalf of the federal government). Increases in upgrades, as well as brokers’ commissions and other ownership transfer costs, accounted for the majority of the increase in residential fixed investment.
In 2020, current-dollar GDP fell 2.3 percent, or $500.6 billion, to $20.93 trillion, compared to a 4.0 percent, or $821.3 billion, growth in 2019. (tables 1 and 3).
In 2020, the price index for gross domestic purchases climbed by 1.2 percent, compared to 1.6 percent in 2019. (table 4). In 2020, the PCE price index climbed 1.2 percent, compared to 1.5 percent in 2019. The PCE price index grew 1.4 percent excluding food and energy expenses, compared to 1.7 percent overall.
Real GDP fell 2.5 percent from the fourth quarter of 2019 to the fourth quarter of 2020, according to data (table 6). In comparison, in 2019 there was a 2.3 percent gain.
The price index for gross domestic purchases grew 1.3 percent in 2020, as assessed from the fourth quarter of 2019 to the fourth quarter of 2020. In comparison, in 2019 there was a 1.4 percent gain. The PCE price index climbed by 1.2 percent, compared to a 1.5 percent increase in the previous quarter. The PCE price index grew 1.4 percent excluding food and energy, compared to 1.6 percent overall.
A Technical Note that is issued with the news release on BEA’s website contains information on the source data and important assumptions utilized for unavailable source data in the advance estimate. For each release, a thorough Key Source Data and Assumptions file is also available. See the “Additional Information” section below for more information on GDP updates.
How is our economy looking in 2020?
Last year, the US economy increased at its quickest rate since 1984, following a steep but brief coronavirus-induced recession in March 2020.
According to the Commerce Department, the nation’s gross domestic product, which measures all goods and services produced, increased by 5.7 percent in 2021. The rate of growth surged even more between October and December, reaching 6.9% on an annualized basis.
What is the 2016 nominal GDP?
In 2016, current-dollar GDP climbed 2.9 percent, or $529.0 billion, to $18,565.6 billion, compared to a 3.7 percent, or $643.5 billion, increase in 2015. (table 1 and table 3).
What is the difference between real and nominal GDP?
Real GDP measures the entire value of goods and services by computing quantities but using inflation-adjusted constant prices. This is in contrast to nominal GDP, which does not take inflation into account.