As can be seen in the ranking of GDP of the 196 nations that we publish, the United States is the world’s top economy in terms of GDP. The United States’ GDP increased in absolute terms.
What was the 2018 GDP?
According to the Bureau of Economic Analysis’ “third” estimate, real gross domestic product (GDP) increased at an annual rate of 2.2 percent in the fourth quarter of 2018 (table 1). Real GDP climbed by 3.4 percent in the third quarter.
The most recent GDP estimate is based on more extensive source data than the “initial” estimate given last month. The growth in real GDP was first estimated to be 2.6 percent. The overall picture of economic growth has not changed with this estimate for the fourth quarter; personal consumption expenditures (PCE), state and local government spending, and nonresidential fixed investment have all been revised lower; imports, which are a subtraction in the calculation of GDP, have also been revised lower (see “Updates to GDP” on page 2).
In the fourth quarter, real gross domestic income (GDI) climbed by 1.7 percent, compared to 4.6 percent in the third quarter. In the fourth quarter, the average of real GDP and real GDI, a supplemental measure of U.S. economic activity that equally weights GDP and GDI, climbed 1.9 percent, compared to a 4.0 percent gain in the third quarter (table 1).
Personal consumption expenditures (PCE), nonresidential fixed investment, exports, private inventory investment, and federal government spending all contributed to the increase in real GDP in the fourth quarter. Negative contributions from household fixed investment and state and local government spending partially offset these gains. Imports, which are deducted from GDP calculations, increased (table 2).
The fourth-quarter slowdown in real GDP growth was due to decreases in private inventory investment, PCE, and federal government spending, as well as a decrease in state and local government spending. An increase in exports and a speeding up of nonresidential fixed investment partially compensated these developments. Imports grew at a slower pace in the fourth quarter than in the third.
In the fourth quarter, current dollar GDP climbed by 4.1 percent, or $206.9 billion, to $20.87 trillion. GDP in current dollars climbed by 4.9 percent, or $246.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases grew 1.7 percent, compared to 1.8 percent in the third quarter (table 4). The PCE price index climbed by 1.5 percent, compared to a 1.6 percent increase in the previous quarter. The PCE price index grew 1.8 percent excluding food and energy expenses, compared to 1.6 percent overall.
PCE, state and local government spending, and nonresidential fixed investment were all revised down 0.4 percentage point in the fourth quarter, partially offset by a downward revision to imports. See the Technical Note for further information. Each version comes with a thorough “Key Source Data and Assumptions” file. See the “Additional Information” section below for more information on GDP updates.
In 2018, real GDP increased by 2.9 percent (from the 2017 annual level to the 2018 annual level), compared to a 2.2 percent gain in 2017. (table 1).
PCE, nonresidential fixed investment, exports, federal government spending, private inventory investment, and state and local government expenditure all contributed to the increase in real GDP in 2018, which was partially offset by a minor negative contribution from residential fixed investment. Imports, which are deducted from GDP calculations, increased (table 2).
The increase in real GDP between 2017 and 2018 was primarily due to increases in nonresidential fixed investment, private inventory investment, federal government spending, exports, and PCE, as well as an increase in state and local government spending, which was partially offset by a decline in residential investment.
GDP in current dollars climbed 5.2 percent, or $1.01 trillion, to $20.49 trillion in 2018, compared to 4.2 percent, or $778.2 billion, in 2017. (table 1 and table 3).
In 2018, real GDP increased by 2.4 percent, compared to 2.3 percent in 2017. (table 1).
In 2018, the price index for gross domestic purchases climbed by 2.2 percent, compared to 1.9 percent in 2017. (table 4). The PCE price index grew 2.0 percent, compared to 1.8 percent in the previous quarter. The PCE price index grew 1.9 percent excluding food and energy expenses, compared to 1.6 percent overall (table 4).
Real GDP climbed 3.0% from the fourth quarter of 2017 to the fourth quarter of 2018. This is compared to a 2.5 percent gain in 2017. In 2018, the price index for gross domestic purchases climbed by 2.1 percent, compared to 1.9 percent in 2017. In 2018, real GDP increased by 2.7 percent, compared to 2.3 percent in 2017. (table 6).
In the fourth quarter, profits from current production (business profits adjusted for inventory valuation and capital consumption) fell $9.7 billion, compared to a rise of $78.2 billion in the third quarter.
Domestic financial firm profits fell $25.2 billion in the fourth quarter, compared to a $6.1 billion drop in the third quarter. Domestic nonfinancial corporations’ profits climbed by $13.6 billion, compared to a gain of $83.0 billion for financial corporations. Profits in the rest of the world climbed by $1.9 billion, compared to a $1.3 billion increase in the United States. Receipts climbed by $8.8 billion in the fourth quarter, while payments increased by $6.9 billion.
What was the 2016 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).
In 2018, which country is the wealthiest?
According to McKinsey & Co, the high rise in net worth over the last two decades has outpaced the rise in global gross domestic product, and has been fueled by surging housing values as a result of low borrowing rates.
According to the study, asset prices are about 50% higher than their long-run average when compared to income. This raises concerns about the wealth boom’s long-term viability.
According to Jan Mischke of Bloomberg, there are concerns about the trend of global net worth growth, citing rising real estate prices as a contributing factor. “, he explained “In many senses, increasing one’s net worth through price increases above and above inflation is dubious. It has a slew of negative side effects.”
In 2021, what was the GDP?
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.
Is nominal GDP equivalent to real GDP?
The monetary value of all products and services generated in a country is measured by GDP. Nominal GDP differs from real GDP in that it takes into account price changes due to inflation, which measures the rate at which prices rise in a given country.
What was the Gross Domestic Product in 2018 and 2019?
The government lowered the economic growth forecast for 2019-20 to 4% from 4.2 percent previously predicted, owing to decline in secondary sectors such as manufacturing and construction. In revised national account figures, the National Statistical Office stated, “Real GDP or GDP at constant (2011-12) prices for the years 2019-20 and 2018-19 stands at Rs 145.69 trillion and Rs 140.03 trillion, respectively, showing a rise of 4.0 percent in 2019-20 and 6.5 percent in 2018-19.”
What is the current real GDP of the United States?
The Gross Domestic Product in the United States, corrected for inflation, is referred to as US Real GDP. The entire value of products produced and services provided in the United States is known as the Gross Domestic Product (GDP). Real GDP is a crucial metric for assessing the economy’s health. A recession is declared when real GDP growth is negative for two quarters in a row. In addition, the FOMC uses GDP as a metric for determining interest rates. US Real GDP increased as high as 12.8 percent per year during the post-World War II boom years, while 0-5 percent growth was more common in the late twentieth century.
The current amount of US Real GDP is 19.81 trillion dollars, up from 19.48 trillion dollars last quarter and 18.77 trillion dollars a year ago.
This is up 1.70 percent from the previous quarter and 5.56 percent from a year earlier.
What is the United States’ most recent GDP?
PCE increased as a result of increases in both services (headed by food services and lodging) and commodities (led by “other” nondurable goods, notably pharmaceutical products). Increases in equipment (headed by transportation equipment) and intellectual property items accounted for the growth in nonresidential fixed investment (led by research and development). The increase in exports was due to an increase in both products and services (dominated by non-automotive capital goods) (led by travel). A drop in retail trade inventories led to a drop in private inventory investment. The reduction in federal spending was mostly due to lower nondefense spending on intermediate goods and services. Nondefense services decreased in the second quarter as banks’ processing and management of Paycheck Protection Program (PPP) loan applications on behalf of the federal government reduced.
In the second quarter, current dollar GDP climbed 13.0 percent on an annual basis, or $684.4 billion, to $22.72 trillion. Current-dollar GDP climbed by 10.9 percent, or $560.6 billion, in the first quarter (revised, tables 1 and 3). The Key Source Data and Assumptions file on BEA’s website has more information on the source data that underpins the estimates.
In the second quarter, the price index for gross domestic purchases grew 5.7 percent, compared to 3.9 percent (revised) in the first quarter (table 4). The PCE price index climbed by 6.4 percent, compared to a 3.8 percent gain in the previous quarter (revised). The PCE price index climbed 6.1 percent excluding food and energy expenses, compared to 2.7 percent overall (revised).
Personal Income
In the second quarter, current-dollar personal income fell $1.32 trillion, or 22.0 percent, compared to an increase of $2.33 trillion (revised), or 56.8%, in the first quarter. The decrease was primarily due to a reduction in government social benefits associated with pandemic relief programs, particularly the reduction in direct economic impact payments to households established by the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act (table 8). Effects of Selected Federal Pandemic Response Programs on Personal Income provides more information on issues that affect personal income.
In the second quarter, disposable personal income fell $1.42 trillion, or 26.1 percent, compared to a rise of $2.27 trillion, or 63.7 percent (revised), in the first quarter. In contrast to a 57.6% gain in real disposable personal income, real disposable personal income fell by 30.6 percent.
Personal spending climbed by $680.8 billion, following a $538.8 billion increase. An increase in PCE for services drove the increase in outlays.
In the second quarter, personal savings totaled $1.97 trillion, down from $4.07 trillion (revised) in the first quarter.
In the second quarter, the personal saving rate (savings as a proportion of disposable personal income) was 10.9 percent, down from 20.8 percent in the first quarter.
Source Data for the Advance Estimate
A Technical Note that is issued with the news release on BEA’s website contains information on the primary source data and assumptions used 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.
Annual Update of the National Economic Accounts
The Annual Update of the National Income and Product Accounts is included in today’s publication; the updated Industry Economic Accounts, as well as the third estimate of GDP for the second quarter of 2021, will be provided on September 30, 2021. The update covered the period from the first quarter of 1999 through the first quarter of 2021, with revisions to GDP, GDI, and their primary components. The base year is still 2012. GDP and the Economy, a May Survey of Current Business item, contains more information about the 2021 Annual Update.
From the second quarter of 2009 through the fourth quarter of 2019, real GDP increased at a pace of 2.3 percent annually, the same as previously reported. Real GDP declined at an annual rate of 19.2% from the fourth quarter of 2019 to the second quarter of 2020, which is the same as previously reported. Real GDP increased at an annual rate of 14.1 percent from the second quarter of 2020 to the first quarter of 2021, an upward revision of 0.1 percentage point from the previously released estimate.
BEA’s archives contain previously released estimates that have been superseded by today’s publication.
Updates for the First Quarter of 2021
Real GDP is expected to rise 6.3 percent in the first quarter of 2021 (table 1), 0.1 percentage point lower than previously reported. Downward revisions to federal government spending, state and local government spending, and exports were largely offset by an upward revision to nonresidential fixed investment in the revision.
Real GDI is now expected to have climbed 6.3 percent in the first quarter (table 1), compared to 7.6 percent in the prior released figures. Compensation was the biggest factor in the negative revision, which was based on fresh first-quarter wage and salary estimates from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages.
The price index for gross domestic purchases is now anticipated to have risen 3.9 percent in the first quarter, down 0.1 percentage point from the previous estimate (table 4). The PCE price index climbed by 3.8 percent, which is 0.1 percentage point higher than the prior estimate. The PCE price index grew 2.7 percent, 0.2 percentage point more than previously reported, when food and energy prices were excluded.
Where does the majority of the US GDP originate?
- GDP is the total of an economy’s final expenses or overall economic production over a certain accounting period.
- Personal consumption expenditures, corporate investment, government expenditures, and net exports are the four key components used by the BEA to compute US GDP.
- The retail and service industries are vital to the economy of the United States.
What was the 2015 GDP growth rate?
The Bureau of Economic Analysis, the government department in charge of compiling GDP estimates, reported that the economy increased 2.9 percent in 2015, up from 2.6 percent previously predicted. That was the most significant increase since 2005.