In addition to updated fourth-quarter projections, today’s announcement includes revised third-quarter 2021 wages and salaries, personal taxes, and government social insurance contributions, all based on new data from the Bureau of Labor Statistics Quarterly Census of Employment and Wages program. Wages and wages climbed by $306.8 billion in the third quarter, up $27.7 billion from the previous estimate. With the addition of this new statistics, real gross domestic income is now anticipated to have climbed 6.4 percent in the third quarter, a 0.6 percentage point gain over the prior estimate.
GDP for 2021
In 2021, real GDP climbed by 5.7 percent, unchanged from the previous estimate (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 components 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 climbed by 10.1 percent (revised), or $2.10 trillion, to $23.00 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 3.9 percent, which was unchanged from the previous forecast, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, which was unchanged from the previous estimate, compared to a 1.2 percent gain. With food and energy prices excluded, the PCE price index grew 3.3 percent, unchanged from the previous estimate, compared to 1.4 percent.
Real GDP grew 5.6 (revised) percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a fall of 2.3 percent 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 climbed 5.6 percent (revised), compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index grew 5.5 percent, unchanged from the previous estimate, versus a 1.2 percent increase. The PCE price index grew 4.6 percent excluding food and energy, which was unchanged from the previous estimate, compared to 1.4 percent.
What is the GDP of the United States in 2020?
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 much debt does America have?
“Parties in power have built up the deficit through increased spending and poorer tax collection, regardless of political affiliation,” says Brian Rehling, head of Global Fixed Income Strategy at Wells Fargo Investment Institute.
While it’s easy to suggest that a specific president or president’s administration led the federal deficit and national debt to move in a given direction, it’s crucial to remember that only Congress has the power to pass legislation that has the greatest impact on both figures.
Here’s how Congress responded during four major presidential administrations, and how their decisions affected the deficit and national debt.
Franklin D. Roosevelt
FDR served as the country’s last four-term president, guiding the country through a series of economic downturns. His administration spanned the Great Depression, and his flagship New Deal economic recovery plan aided America’s rebound from its financial abyss. The expense of World War II, however, contributed nearly $186 billion to the national debt between 1942 and 1945, making it the greatest substantial rise to the national debt. During FDR’s presidency, Congress added $236 billion to the national debt, a rise of 1,048 percent.
Ronald Reagan
Congress passed two major tax cuts during Reagan’s two administrations, the Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986, both of which reduced government income. Between 1982 and 1990, Congress passed Acts that reduced revenue as a percentage of GDP by 1.7 percent, resulting in a revenue shortfall that contributed to the national debt rising 261 percent ($1.26 trillion) during his presidency, from $924.6 billion to $2.19 trillion.
Barack Obama
The Obama administration oversaw both the Great Recession and the recovery that followed the collapse of the mortgage market throughout his two years in office. The Economic Stimulus Act of 2009, which pumped $831 billion into the economy and helped many Americans avoid foreclosure, was passed by Congress in 2009. When passed by a strong bipartisan vote, congressional tax cuts added extra $858 billion to the national debt. During Obama’s two terms in office, Congress increased the national deficit by 74% and added $8.6 trillion to the national debt.
Donald Trump
Congress approved the Tax Cuts and Jobs Act in 2017, slashing corporate and personal income tax rates, during his single term. The cuts, which were seen as a bonanza for the wealthiest Americans and corporations at the time of their passage, were expected by the Congressional Budget Office to increase the government deficit by $1.9 trillion at the time of their passing.
The federal deficit climbed from $665 billion in 2017 to $3.13 trillion in 2020, despite the Treasury Secretary’s prediction that the tax cuts would reduce it. Some of the rise was due to tax cuts, but the majority of the increase was due to successive Covid relief programs.
The public’s share of the federal debt has risen from $14.6 trillion in 2017 to more than $21 trillion in 2020. The national debt is made up of public debt and intragovernmental debt (amounts owed to federal retirement trust funds such as the Social Security Trust Fund). It refers to the amount of money owed by the United States to external debtors such as American banks and investors, corporations, people, state and municipal governments, the Federal Reserve, and foreign governments and international investors such as Japan and China. The money is borrowed in order to keep the United States running. Treasury banknotes, notes, and bonds are included. Treasury Inflation-Protected Securities (TIPS), US savings bonds, and state and local government series securities are among the other holders of public debt.
“The national debt is growing at a rate it hasn’t seen in decades,” says James Cassel, chairman and co-founder of Cassel Salpeter, an investment bank. “This is the outcome of the basic principle of spending more money than you earn.” Cassel also points out that while both major political parties have spoken seriously about reducing the national debt at times, discussions and strategies have stopped.
When both sides pose discussing raising the debt ceiling each year, the national debt is more typically utilized as a bargaining chip. The United States would default on its debt obligations if the debt ceiling was not raised. As a result, Congress always votes to raise the debt ceiling (the maximum amount of money the US government may borrow), but only after parties have reached an agreement on other legislation.
What will China’s GDP be in 2021?
According to GDP statistics from 2021, China’s most productive provinces and cities are listed below. According to the National Bureau of Statistics, China’s GDP in 2021 was RMB 114.4 trillion (US$17.7 trillion), up around RMB 13 trillion (US$3 trillion) from 2020, or 8.1 percent year-on-year growth (NBS).
What kind of economy does the United States have?
- The United States has a mixed economy, including elements of both capitalism and socialism.
- When it comes to capital utilization, a mixed economy celebrates economic freedom, but it also allows for government involvement for the greater good.
- With restrictions and licensing requirements, the US government regulates a portion of the economy, including education, courts, highways, hospital care, and postal service.
- In a mixed economy, the government’s involvement can also include financial measures such as monetary and fiscal policy.
What is the largest GDP ever recorded in the United States?
From 1960 to 2020, GDP in the United States averaged 7680.13 USD Billion, with a top of 21433.22 USD Billion in 2019 and a low of 543.30 USD Billion in 1960.
What is Canada’s debt burden?
The federal government is primarily responsible for the increase in CGG’s net debt. In 2020, the federal net debt increased by $253.4 billion to $942.5 billion, or 42.7 percent of GDP, up from 29.8 percent in 2019. The federal government’s financial assets increased 13.2 percent to $523.5 billion, while liabilities soared 27.3 percent to $1,466.0 billion. In 2020, debt securities ($1,165 billion) and liabilities under federal employee pension schemes ($167.7 billion) accounted for 90.9 percent of total liabilities.
Despite this extraordinary increase in the government net debt-to-GDP ratio during the pandemic, the ratio (42.7 percent) is still significantly below the mid-2000s highs.
What is China’s debt to the United States?
Over the previous few decades, China has steadily increased its holdings of US Treasury securities. The Asian nation owns $1.065 trillion, or 3.68 percent, of the $28.9 trillion US national debt, more than any other foreign entity save Japan as of October 2021.
Which country is the most powerful in the world?
In the 2021 Best Countries Report, Canada wins the top overall rank as the world’s number one country for the first time. After coming in second place in the 2020 report, Canada has now eclipsed Switzerland in the 2021 report, with Japan, Germany, Switzerland, and Australia following closely behind.