1. Economy of USA
By:
Kushagra Sharma [12DCP-057]
Prodyot Parashar [12DCP-083]
Raj Kumar Singh [12DCP-089]

2. Introduction
• Consists of 50 districts and a federal district, with Washington, D.C. as its capital.
• At 3.79 million square miles and with over 314 million people, it is the 4th largest country by total
area, and 3rd largest by population.
• One of the world's most ethnically diverse and multicultural nations, the product of large-scale
immigration from many countries.
• US economy is the largest in the world with a GDP of $ 15.1 trillion.
• Ranks 9th in the world in nominal GDP per capita.

3. Contd..
• Its currency U.S. dollar ($) is the world's primary reserve currency.
• It is the largest importer of goods and third largest exporter.
• In 2010, the total U.S. trade deficit was $635 billion.
• Canada, China, Mexico, Japan, and Germany are its top trading partners & China is the largest
foreign holder of U.S. public debt.
• In 2009, the private sector was estimated to constitute 86.4% of the economy, federal
government activity 4.3% and state and local government activity 9.3%.

4. STRUCTURE OF THE ECONOMY
• World’s largest
• Free Market (Actually mixed economy)
Low government regulations
• Impacts world markets
Biggest trading partner to 60 countries

5. STRUCTURE OF THE ECONOMY
• Highest labour force participation rate
139.396 million employed
• US Industry Sectors
• Agriculture  1.2%
• Industrial  19.6%
• Services  79.2%

7. • GDP
• IIP
• GNP
• CPI
• PPI
• WPI • Exports
• Inflation • Imports
• Unemployment • Balance of Trade

8. Gross domestic product (GDP)
Market value of all officially recognized final goods and services
produced within a country in a given period.

9. Gross domestic product (GDP)
GDP of USA
16.00 15.09
13.96 14.22 14.45
13.86
14.00 13.31
12.56
11.80
12.00
10.59 11.09
10.00
GDP in Trillions
8.00
6.00
4.00
2.00
0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year

10. Gross domestic product (GDP) Growth Rate
GDP Growth Rate of USA
4.00% 3.48%
3.08% 3.02%
3.00% 2.55% 2.66%
1.83% 1.91% 1.70%
2.00%
1.00%
GDP Growth Rate
0.00% -0.36%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-1.00%
-2.00%
-3.00%
-3.53%
-4.00%
Year

11. GROSS NATIONAL PRODUCT (GNP)
Total income earned by the nation’s factors of production, regardless of
where located

12. GROSS NATIONAL PRODUCT (GNP)
GNP of USA
16.00 15.23
14.10 14.39 14.64
13.63 13.94
14.00 12.76
11.91
12.00 10.66 11.14
10.00
GNP in Trillions
8.00
6.00
4.00
2.00
0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year

13. GDP COMPARISON
GDP (2001)
GDP(2010)
Japan
13% US
US
32%
22%
China
Others
11% China
65% Others
India 3%
51%
Japan 3% India
8% 1%

14. INFLATION RATE
Inflation Rate in USA
4.5
4 3.8
3.4
3.5 3.2 3.2
3 2.7 2.8
2.5 2.3
Inflation Rate %
2 1.6 1.6
1.5
1
0.5
0 -0.4
-0.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-1 Year

15. UNEMPLOYMENT RATE
Unemployment Rate in USA
12
10 9.3 9.6
9
8
Unemployment Rate %
5.8 6 5.8
6 5.5 5.1
4.6 4.6
4
2
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year

16. WHOLESALE PRICE INDEX (WPI)
WPI of USA
140 127.73
117.37 120.45
120 109.85 109.69 104.67
100
100 93.18
87.75 83.3 85.26 84.32
80
WPI
60
40
20
0
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
YEAR

17. INTERNATIONAL INVESTMENT POSITION (IIP)
IIP of USA
0
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
-500,000
-1,000,000 -1,337,014
-1,500,000 -1,796,005 -1,932,149 -1,875,032
-2,044,631
-2,093,794
-2,000,000 -2,321,770 -2,191,653 -2,253,026
-2,473,599
IIP
-2,500,000
-3,000,000 -3,260,158
-3,500,000
-4,030,250
-4,000,000
-4,500,000
YEAR

18. PPI

19. HUMAN DEVELPOMENT INDEX (HDI)

20. HUMAN DEVELPOMENT INDEX (HDI)
Human Development Index for USA
Gross GNI per
Human Life Expected
Mean years National capita rank Non Income
Year Development expectancy at years of
of schooling Income (GNI) minus HDI HDI
Index (HDI) birth schooling
per capita rank
2011 0.910 78.5 12.4 16.0 43,017 6 0.931

21. HUMAN DEVELPOMENT INDEX (HDI)
HDI for USA
0.915
0.91
0.91 0.908
0.907
0.906
0.905
0.905 0.904
0.902
HDI
0.9
0.897
0.895
0.89
2000 2005 2006 2007 2008 2009 2010 2011
Year

22. Exports

23. Imports

24. Balance of Trade

26. Fiscal Deficit
$1.3 Trillion

27. Fiscal Deficit
More than 8%
of GDP

28. Fiscal Deficit
Close to the
1930’s Deficit

29. US Borrowings
From Bank And Investors
From Foreign Governments
From World Bank

30. US Borrowings

31. Measures
Monetary policy
• Fed responded to the problems by reducing the federal funds target
and the discount rate.
• Beginning on September 18, 2007, and ending on December
16, 2008, the target was reduced from 5¼% to a range between 0%
and ¼%, where it currently remains.
• Purchasing longer-term securities--specifically, Treasury, agency, and
agency mortgage-backed securities--on the open market.

32. Measures
Fiscal Policy
• Deteriorated since the onset of the financial crisis and the recession.
• Congressional Budget Office (CBO) projections :
deficit to fall from current 9 percent of GDP to 5 percent of GDP by 2015, but then to
rise to about 6-1/2 percent of GDP by 2020.
• To stabilize the ratio of federal debt to the GDP the primary budget deficit
must be reduced to 0.4.

33. SUMMARY THOUGHTS
•Economic growth signals are still positive and
consumption is apparently rebounding, while
GOOD corporate earnings are strong.
Unemployment, Housing, Interest Rates, and Oil all
BAD loom as potential caution flags that could reverse
the good news story
Government debt and overall debt are not going away
UGLY as major issues that could reduce long term growth and
lead to unpleasant outcomes
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34. SUMMARY THOUGHTS
•Economic growth signals are still positive and
consumption is apparently rebounding, while
GOOD corporate earnings are strong.
Unemployment, Housing, Interest Rates, and Oil all
BAD loom as potential caution flags that could reverse
the good news story
Government debt and overall debt are not going away
UGLY as major issues that could reduce long term growth and
lead to unpleasant outcomes
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35. Conclusion
• The U.S. economy will be firing on more cylinders in 2011
• Net exports will contribute to growth and housing will (hopefully) stop
being a drag by mid-year; nonresidential construction has turned the
corner
• The pace of consumer spending has also accelerated, thanks to a gradual
improvement in the employment outlook and diminished worries about a
double-dip
• By far the best news is that business optimism is the highest in three years
and cash flow remains very strong
• The Obama-Republican tax package will add around 0.6 percentage point
to growth in 2011, but much of the recent rebound is not stimulus related
• Don’t expect any significant action on the deficit until after 2012
• Bottom line: growth in the next few year swill average 3% to 3.5%
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36. Thank You
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