Analysis of U.S economy
Changes in GDP
The U.S Gross Domestic Product (GDP) in the first of 2016 increased by 1.1 percent as per chart below. Later in 2015 1.4 percent increase is realized, earlier in 2014 there is decrease in the GDP with consecutive increase in the other quarters of the year, in 2013 there is increase in all the four quarters as per the chart 1 below retrieved from bea.gov. Chart 1 Chart 2
From chart 2 the percentage increase has been almost equal only in 2013 ranging within 3% where there was a shoot in increase up to 4% in 2013.The chart 2 is retrieved from multpl.com.
Changes in savings
According to Bea the savings are as follows
From the…show more content… and 8.5% in Germany. On average, over 2016 they have been about 1.9% and 0.3%, respectively and at about 0.3% for the euro area as a whole.”(ecb.europa.eu, June 2016)
The unemployment rate has been dropping for the last 4 year and comparing from the previous year the unemployment rate has been at almost same rate.
Generally, according to World Bank data,
GDP : 16.77 Trillion USD
Savings : 3.21 Trillion
Investment : $131 billion
Real Interest rates : 1.8%
Unemployment : 6.2%
The next 5 years would be difficult as investment rate into United States has fallen from last five years. Real Interest rates have also increased over past 5 years. Unemployment has decreased in past 5 years. Savings are on record number and may continue to increase. GDP may remain flat.
Government policies on Economic growth
The main factors that determine the country 's productivity and is determined by government policies is physical capital per worker, human capital per worker, natural resources per worker and technological knowledge as discussed further below.
Capital per worker
The workforce will be more productive if they are provided with better tools and machines to work with to produce goods and services. When a country make laws/promote that encourage increase capital production then its workforce will be more productive hence promoting the final