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 increased 4.9 percent excluding food and energy prices, 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.
What is the most recent GDP of 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 will the US GDP be in 2021?
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.
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).
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 current GDP growth rate in the United States for the third quarter of 2021?
Quarterly real GDP growth in the United States from 2011 through 2021. The real U.S. GDP climbed by 2.1 percent in the third quarter of 2021 after the economic effects of the coronavirus (COVID-19) epidemic.
What is the largest contributor to the US economy?
The financial, real estate, insurance, rental, and leasing industries contributed the highest value to the US GDP in 2020. This industry contributed $4.66 trillion to the national GDP in that year.
Is the economy doing well right now?
Indeed, the year is starting with little signs of progress, as the late-year spread of omicron, along with the fading tailwind of fiscal stimulus, has experts across Wall Street lowering their GDP projections.
When you add in a Federal Reserve that has shifted from its most accommodative policy in history to hawkish inflation-fighters, the picture changes dramatically. The Atlanta Fed’s GDPNow indicator currently shows a 0.1 percent increase in first-quarter GDP.
“The economy is slowing and downshifting,” said Joseph LaVorgna, Natixis’ head economist for the Americas and former chief economist for President Donald Trump’s National Economic Council. “It isn’t a recession now, but it will be if the Fed becomes overly aggressive.”
GDP climbed by 6.9% in the fourth quarter of 2021, capping a year in which the total value of all goods and services produced in the United States increased by 5.7 percent on an annualized basis. That followed a 3.4 percent drop in 2020, the steepest but shortest recession in US history, caused by a pandemic.
In 2021, did the US economy grow?
According to the Bureau of Economic Analysis’ “advance” estimate, real gross domestic product (GDP) expanded at an annual rate of 6.9% in the fourth quarter of 2021 (table 1). Real GDP climbed by 2.3 percent in the third quarter.
The GDP estimate issued today is based on incomplete or subject to further adjustment by the source agency source data (refer to “Source Data for the Advance Estimate” on page 4). On February 24, 2022, the “second” estimate for the fourth quarter, based on more full data, will be revealed.
In 2021, how much did the GDP grow?
As the economy continues to recover from the ravages of the COVID-19 pandemic, US GDP growth surged in the fourth quarter, expanding at a 6.9% annual rate, up from the preceding four quarters’ rate of growth. Increased inventory investment and increased service consumption accounted for all of GDP growth in the fourth quarter. Real GDP increased by 5.5 percent in the first four quarters of 2021, the fastest rate since 1984.
In the fourth quarter, the economy was most likely producing at or near its full potential. The economy was still trending 1.4 percent below pre-pandemic levels. Even if the pandemic had not occurred, the economy is unlikely to have continued to develop at the same rate in 2020 and 2021 as it had in previous years. Prior to the pandemic, forecasters projected a slowdown since the economy was close to or at maximum employment, making it improbable that job gains would continue at the same rate. Furthermore, because of higher fatalities and limited immigration, which resulted in a smaller-than-expected labor force, and low investment, which resulted in a smaller-than-expected capital stock, the pandemic itself has certainly diminished potential.
Even while the economy was near to where it would have been had the epidemic and the government’s response not occurred, the economy’s makeup was drastically changed. On the supply side, employment remained low (because to low labor force participation), but this was compensated for by longer average hours and improved productivity. Final expenditures were biased towards commodities and residential investment, rather than services, business fixed investment, inventories, and net exports, on the demand side. In the fourth quarter, the demand side began to take on a more regular composition, but it remained highly skewed.
What is the projected GDP for 2021?
In 2021, real GDP is expected to expand by 5.6 percent, before increasing by 3.7 percent in 2022 and 2.4 percent in 2023. Supply difficulties will gradually subside, allowing businesses to restore inventories and boost demand growth in the short run.
Which state in the United States has the largest economy?
In the third quarter of 2020, real GDP increased in all 50 states and the District of Columbia. According to the Bureau of Economic Analysis, the United States’ overall real GDP expanded at a rate of 33.4 percent each year. The annual growth rate of real GDP in each state ranged from 19.2 percent in D.C. to 52.2 percent in Nevada. In the second quarter of 2020, real GDP decreased significantly in all 50 states and D.C., ranging from -20.4 percent in D.C. to -42.2 percent in Hawaii and Nevada.
The considerable increases in GDP from Q2 to Q3 indicate ongoing attempts to reopen enterprises and resume economic activity that had been halted due to the COVID-19 outbreak. Healthcare and social assistance, durable goods manufacturing, and lodging and food services were the biggest contributors to the increase in real GDP at the national level. Healthcare and social aid grew at a rate of 75.1 percent nationwide, and was the largest contributor in 26 states.
California ($3,120,386), Texas ($1,772,132), New York ($1,705,127), Florida ($1,111,614), Illinois ($875,671), Pennsylvania ($788,500), Ohio ($683,460), Washington ($632,013), Georgia ($627,667), and New Jersey ($625,659) are the ten states with the highest GDPs (in millions of dollars). California, Texas, New York, and Florida are the four states that contribute more than $1 trillion to the US GDP. With a GDP of $3,120,386,000,000, California has the highest GDP of any state, accounting for nearly 14.7 percent of the country’s overall GDP. With $1,772,132,000,000 in GDP, Texas is in second place, accounting for 8.4% of the country’s total.
What contribution does California provide to the US economy?
California leads the nation in the production of fruits, vegetables, wines, and nuts, making agriculture one of the most important aspects of the state’s economy. Cannabis, nuts, grapes, cotton, flowers, and oranges are the state’s most valuable crops. California produces the majority of domestic wine in the United States. Dairy products provide for the largest portion of farm income. The great productivity of California’s fields is due to fertile soil, a lengthy growing season, the adoption of modern agricultural practices, and substantial irrigation. Irrigation is essential because the long, dry summers prevent most crops from growing here; as a result, California Indians had essentially no agriculture. To meet California’s large irrigation needs, extensive and costly irrigation systems such as furrow “gravity” irrigation, sprinkler, and drip irrigation systems have been designed. Because firms face significant pressure to control labor costs by employing unlawful means to harvest California’s large crops, illegal immigration to the United States has traditionally been lured to the state.
Because of California’s location on the Pacific coast and its fast rising population, huge seaports in the San Francisco Bay area and inland ports in Sacramento, among other places, were built. The SS California, the first paddle steamer, landed at San Francisco on February 29, 1849, with over 400 people attempting to reach gold rush zone. She left New York City on October 6, 1848, before the gold discoveries had been confirmed and the gold rush had begun in earnest. Offloading cargo and people onto paddle steamers for transportation up the Sacramento River to Sacramento, Stockton, and other destinations was how passengers and freight were transported to Sacramento. Ports were developed up and down the California coast as the population grew, with significant ports in Long Beach, Los Angeles, and San Diego. San Diego presently has the largest US naval base on the west coast. (For more detail, see California’s Maritime History.) The state’s shipping sector grew to service the rising international trade with South America, Asia, and Oceania by transporting freight from California to Europe and the eastern United States. Several military sites and wartime businesses were soon created in the state during World War II to supply the Pacific and Atlantic ocean fleetsships could utilize the Panama Canal to travel from one ocean to the other. The Kaiser shipyards in Richmond and Los Angeles built the most commerce ships in the United States. In the San Francisco Bay, the Mare Island Naval Shipyard (now closed) produced submarines and repaired many of the ships utilized by the US Navy Pacific Fleet during WWII. California’s rapidly increasing aircraft industry has been considerably expanded. Since then, these defense-related businesses have generally shuttered or relocated to less expensive parts of the country.
With the introduction of the Kinetoscope (early movie camera) by Thomas Edison in 1894, California would become a pioneer in the sound picture movie industry when “talkies” were introduced. Although the concept of merging motion images with recorded sound is nearly as old as film itself, synchronized dialogue was only made possible in the late 1920s thanks to the development of the Audion amplifier tube and the advent of the Vitaphone system. “Talkies” became increasingly popular after the release of The Jazz Singer in 1927. Silent film production had halted in the United States within a decade. In the early twentieth century, the booming film business began relocating to Southern California due to low land costs, a pleasant year-round environment, and wide open expanses. The early twentieth-century cinema patent conflicts resulted in the proliferation of film firms across the United States. Many used technology for which they did not have patent rights, making filming in New York “hazardous” because it was too close to Edison’s company headquarters and his agents, who were dispatched to seize “illegal” cameras. Because of the region’s good year-round weather and the fast rising availability of “talent” both before and behind the cameras, most major film studios had established movie production facilities in Southern California near or in Los Angeles by 1912. California has been a major U.S. center for motion pictures, television shows, cartoons, and associated entertainment industries since the 1920s, particularly in the Hollywood and Burbank districts.
Electronics, computers, machinery, transportation equipment, and metal items have all seen remarkable growth since 1945, whereas aircraft and navy manufacture have practically ended. Stanford University, its affiliates, and its graduates were instrumental in the growth of California’s electronics and high-tech industries. Stanford University’s leaders regarded their role as guiding the development of the West beginning in the 1890s, and they shaped the school accordingly. For the first fifty years of Silicon Valley’s existence, regionalism helped align Stanford’s objectives with those of the area’s high-tech enterprises. Frederick Terman, as Stanford’s dean of engineering and provost in the 1940s and 1950s, encouraged academics and alumni to create their own businesses. He is credited for helping to establish Hewlett-Packard, Varian Associates, and other high-tech companies such as Apple Inc., Google, and others in the Silicon Valley that grew up around the Stanford campus. Despite the growth of other high-tech economic centers in the United States and around the world, Silicon Valley remains a prominent hub for high-tech innovation and development, accounting for one-third of all venture capital investment in the country. Silicon Valley comprises the entire Santa Clara Valley, the southern Peninsula, and the southern East Bay from a geographical standpoint. Southern California is also home to a variety of high-tech and modest low-tech, typically low-wage, businesses.
Tourism contributes significantly to California’s economy. Yosemite National Park was founded in 1890, and it was soon followed by nine additional national parks, seashores, and other protected places around California. Every year, millions of people visit Disneyland, which opened in 1955, and other theme parks.
During the mid-twentieth century, California also pioneered various retail innovations, including fast food outlets and credit cards.
California is home to national fast food franchises such as A&W Restaurants (1919), McDonald’s (1940), Taco Bell (1961), and Panda Express (1983).
Visa Inc. (formerly BankAmericard) was founded in 1958 as a result of a Bank of America experiment in Fresno, whereas MasterCard (formerly Master Charge) was founded in 1966 by a collection of California banks to compete with BankAmericard.
As of 2017, if the state were treated individually, it would be the world’s fifth largest economy, behind the United States, China, Japan, and Germany. The country recently passed the United Kingdom to claim fifth place. California’s GDP was $2.751 trillion in the third quarter of 2017, according to the US Bureau of Economic Analysis.