United States

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

The US is the largest and most technologically powerful economy in the world, with a per capita GDP of USD46,000. USA has the largest national GDP in the world, it was slightly less than the combined GDP of the European Union at purchasing power parity in 2006.

During the last few years as a result of growing defense expenses, higher spending on public healthcare, and limited governmental budget solutions, federal finances remain in deficit. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. The merchandise trade deficit reached a record USD840 billion in 2007.

The GDP growth was 3.2% and 3.4% in 2004 and 2005 respectively. As per IMF, it is estimated at 2.9% in 2007. The unemployment rate is showing a downward trend and is estimated at 4.8% in 2007.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	11,685.92	12,433.92	13,194.70	13,794.22e	14,305.70e
GDP (constant prices, annual % change)	3.6	3.1	2.9	1.9e	1.9e
GDP per capita (USD)	39,751.09	41,885.90	44,024.17	45,593.85e	46,819.85e
General government balance (in % of GDP)	-4.4	-3.6	-2.6	-2.6e	-2.9e
Inflation rate (%)	2.7	3.4	3.2	2.7e	2.3e
Unemployment rate (% of the labor force)	5.5	5.1	4.6	4.7	5.7
Current Account (billions USD)	-640.16	-754.85	-811.48	-784.34e	-788.29e
Current Account (in % of GDP)	-5.5	-6.1	-6.2	-5.7e	-5.5e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	4.6	4.7	5.7

Source:

Main sectors of industry

The US has important natural resources, a well-developed infrastructure, and high productivity. The United States is the largest importer of goods and second largest exporter.

The US remains an industrial power: industrial sector contributes to nearly 20% to GDP. Agriculture contributes only 0.9% of the GDP but produces 60% of the world's agricultural production. . The USA is the world’s largest producer of liquid natural gas, aluminium, electrical and nuclear energy and the third largest producer of oil in the world.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	-1.7	4.3	4.4
Value added (in % of GDP)	1.3	22.0	76.7
Employment by sector (in % of total employment)	1.6	20.6	77.8

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.00	1.00	1.00	1.00	1.00

Source: World Bank - World Development Indicators

Foreign trade in figures

The country generally has reduced trade barriers and coordinated the world economic system. The United States is convinced that trade promotes economic growth, social stability, and democracy in individual countries and also promotes better international relations.

U.S. exports account for about a quarter of the economic growth. Finally, the U.S. goods and services deficit decreased in 2007, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased USD 46.9 billion from USD 758.5 billion in 2006 to USD 711.6 billion in 2007, as exports increased more than imports. As a percentage of U.S. gross domestic product, the goods and services deficit was 5,1 percent in 2007, down from 5,7 percent in 2006.

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	1,164,740	1,260,754	1,472,960	1,677,400	1,859,684
Exports of goods (millions USD)	685,933	716,704	811,010	898,457	1,027,430
Imports of services (millions USD)	231,049	250,239	290,278	314,575	342,399
Exports of services (millions USD)	288,789	299,392	340,932	376,788	409,385
Imports of goods and services (annual % change)	3.4	4.6	10.7	n.c.	n.c.
Exports of goods and services (annual % change)	-2.3	1.8	8.4	n.c.	n.c.
Imports of goods and services (in % of GDP)	13.7	14.2	15.4	n.c.	n.c.
Exports of goods and services (in % of GDP)	9.7	9.6	10.1	n.c.	n.c.
Trade Balance (millions USD)	-478,807	-544,050	-661,950	-778,943	-832,253
Trade Balance (including service) (millions USD)	-421,068	-494,897	-611,296	-716,730	-765,268
Current Account (millions USD)	-472,443	-527,514	-665,288	-791,509	-856,669
Current Account (in % of GDP)	-4.5	-4.8	-5.7	-6.4	-6.5
Foreign trade (in % of GDP)	23.4	23.7	25.4	n.c.	n.c.

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Canada	22.2%
Mexico	12.9%
Japan	5.8%
China	5.3%
United Kingdom	4.4%

Main suppliers (% of imports)	2006
Canada	16.0%
China	15.9%
Mexico	10.4%
Japan	7.9%
Germany	4.8%

Source: 2006

Main products

Main exports (% of exports)	2006
Machinery and mechanical appliances	17.6%
Electrical machinery and equipment	14.1%
Vehicles other than railway or tramway	8.9%
Aircraft, spacecraft	6.4%
Photographic, cinematographic, measuring and medical instruments	6.0%

Main imports (% of imports)	2006
Mineral fuels, mineral oils	18.0%
Machinery and mechanical appliances	13.0%
Electrical machinery and equipment	12.2%
Vehicles other than railway or tramway	11.4%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: US Department of Commerce (Economy, Trade and Industry)US Department of Labor US Department of Agriculture International Trade Administration
Statistical Office: US Census Bureau
Central Bank: The Federal Reserve
Stock Exchange: New York Stock Exchange- Euronext
American Stock Exchange
Philadelphia Stock Exchange
Boston Stock Exchange
Chicago Stock Exchange
Chicago Mercantile Exchange
Chicago Board Options Exchange
Minneapolis Grain Exchange
Kansas City Board of Trade
NASDAQ
Online newspapers: New York Times
Washington Post
USA Today
Financial Times
Wall Street Journal
Philadelphia Online
Los Angleles Times
Chicago Tribune
The San Francisco Chronicle
Atlanta Journal Constitution
Boston Globe
Miami Herald
Cincinnati Enquirer
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Economic portals: International Monetary Fund (IMF)
The World Bank
National Bureau of Economic Research
Bureau of census
Bureau of Labor Statistics
Bureau of Economic Analysis
Economic Statistics

Political outline

Executive Power

President is both the chief of the state and the head of the government. President is elected by a college of representatives (who are elected directly from each state) to serve a four-year term. President is the commander-in-chief of the armed forces.

These powers are checked by parliament. The Cabinet is appointed by the President subject to approval by the upper house of parliament.

Legislative Power

The legislature is bicameral in the United States. The parliament called Congress consists of Senate (the upper house) and the House of Representatives (lower house). Senate is more powerful unlike other parliamentary democracies. The Senate has the power to confirm or reject presidential appointments and to ratify treaties; the House of Representatives has the sole right to initiate revenue bills, although they may be amended or rejected by the Senate. President has the power to veto the legislation passed by the Congress.

Main political parties

The United States has a two-party system :
- Democratic Party : the oldest political party in the world (established in 1820s) with a liberal, pro-working class Philosophy;
- Republican Party : established in 1854, socially conservative but economically more liberal, favors free-market economy and capitalism.

Current political leaders

President: George W. BUSH (since January 2001, re-elected in 2004): Republican Party

Next election dates