The Gross Domestic Product (GDP) of the United States is a measure of the country’s economic output. It is the total value of all goods and services produced in the country over a given period of time. The GDP growth rate is the percentage increase or decrease in GDP from one period to another.
According to the U.S. Bureau of Economic Analysis, the real GDP of the United States increased at an annual rate of 4.9% in the third quarter of 2023, which is the most since the last quarter of 2021 . This growth rate is slightly below the second estimate of 5.2%, but matches the 4.9% initially reported in the advance estimate . The increase in the third quarter primarily reflected increases in consumer spending and inventory investment .
On the expenditure side, personal consumption expenditures account for 68% of total GDP, out of which purchases of goods constitute 23% and services 45%. Private investment accounts for 16% of GDP and government consumption and investment for 18%. As the value of goods exported (13.5%) is lower than the value of goods imported (16.5%), net exports subtracts 3% from the total GDP value .
The GDP growth rate of the United States has been volatile over the years. In 2022, the real GDP of the United States increased by 2.1% compared to 2021 . This rate of annual growth indicates a return to economy normalcy after 2020 saw a dramatic decline in the GDP growth rate due to the coronavirus (COVID-19) pandemic, and high growth in 2021 .
In conclusion, the GDP growth rate of the United States has been volatile over the years, but the country has seen a strong growth rate of 4.9% in the third quarter of 2023, which is the most since the last quarter of 2021. The increase in the third quarter primarily reflected increases in consumer spending and inventory investment. Personal consumption expenditures account for 68% of total GDP, out of which purchases of goods constitute 23% and services 45%. Private investment accounts for 16% of GDP and government consumption and investment for 18%. As the value of goods exported (13.5%) is lower than the value of goods imported (16.5%), net exports subtracts 3% from the total GDP value..