Expected US GDP Growth Rate Going Forward Research Paper

pass judgment US gross domestic product Growth Rate Going Forward - Research Paper ExampleThe recess is officially said to have ended by the third draw of 2009. However, household incomes kept dropping for the two year period after September 2009 (Pear, 2012). The key measures of macroeconomic indicators for a product commercialise and labor market include Gross Domestic product (gross domestic product) which measures the real(a) changes in growth and levels of real output and changes in average consumer prices. Changes in the labor market are measured or indicated by the ramble of unemployment, total employment and total unemployment (Vroman & Brusentsev, 2005). Other indicators include the base interest rate which is goaded based on inflation and inflation levels. These also in turn affect the consumer purchasing source and the level of economic activity in an delivery. The United States is a free capitalistic economy where the forces of submit and supply and free enterp rise dictate economic development. This paper evaluates the trends, performance and forecasts for the US economy by looking at key economic indicators and concludes at the end of the paper. Literature review The US economy is the largest in the world and its performance affects not only the USA, but also other countries which are business partners and usually affects the whole world too. The last two years, from 2010, have seen an increase in overall GDP growth although the rate of GDP growth fell from the third quarter of 2010 (Isidore, 2011). In the first quarter of 2010 GDP grew by 3.9 percentageage and 3.8 percent in the second quarter. The rate fell to 2.5 percent GDP growth in the third quarter and falling further to 2.3 percent in the fourth quarter. In 2011 the GDP grew by just 0.4 percent and improved in the second quarter by ripening 1.3 percent in the second quarter. The third quarter of 2011 saw the GDP grow by 2.5 percent showing a steady improvement in GDP growth in 2011, after registration for inflation (Isidore, 2011). The observed growth rate especially in the third quarter though honourable is still considered weak as a growth rate of at least 3 percent to be considered as real growth. The economy is judge to just grow by 2.2 percent in the fourth quarter of 2011 and achieve a 2.3 percent growth rate throughout 2012, though economists predict a robust 3 percent growth in the fourth quarter (Isidore, 2011). The revised upwardly trend for fourth quarter GDP growth is due to contributions from computer sales adding 0.12 percent. Real personalised consumption rose by 2.1 percent in the fourth quarter, which is higher than the 1.7 percent experienced in the third quarter of 2011. Real exports of commodities grew by 4.3 percent in the fourth quarter all change to the expected GDP growth of 3 percent in 2011/2012 (US GDP Growth rate 2012). The US is expected to achieve a GDP growth of 2.1 percent in 2012 while 2013 lead see a GDP growth o f 2.2 percent (The economist online, 2012). While the US GDP is expected to grow, the growth is still minute compared to what a good GDP growth should be (3 percent). The trend and forecasts are summarized in the table below 2009 2010 2011 2012 2013 -0.48 3.13 1.63 2.10 2.20 Source Trading economics GDP which stands for Gross Domestic crossway refers to the total value of all services and goods produced at heart an economy (or country) in a given year. It is a measure of how much income is generated from production activities within the countrys economy. The GDP incorporates only the finished commodities (goods and services) produced within the economy but does not incorporate capital goods or raw materials used to produce some other