U.S. economic performance relative to other group of seven (G-7) members.

AuthorYoussef, Michael
PositionINTERNATIONAL ECONOMIC COMPARISONS - Statistical data

Economic Growth

The real gross domestic product (GDP) of the United States--the output of goods and services produced in the United States measured in 1996 prices--increased at an annual rate of 4.0 percent in the fourth quarter of 2003, compared with 8.2 percent growth in the third quarter, according to advance estimates by the U.S. Department of Commerce, Bureau of Economic Analysis. (2)

The deceleration in real GDP growth in the fourth quarter of 2004, primarily reflected decelerations in personal consumption expenditure, in equipment and software and in residential fixed investment that were partly offset by an upturn in inventory investment, and an acceleration in exports. Imports which are a subtraction in the calculation of GDP increased.

Real personal consumption expenditures, increased by 2.6 percent down from an increase of 6.9 percent in the third quarter. Of this expenditure category, durable goods purchases increased by only 0.9 percent, down from an increase of 28.0 percent in the third; and nondurable goods increased by 4.4 percent, down from an increase of 7.3 percent in the third quarter. Services expenditure increased by 2.1 percent compared with an increase of 2.8 percent in the third quarter. Real nonresidential fixed investment, increased by 6.9 percent in the fourth quarter down from an increase of 12.8 percent in the third quarter. Nonresidential structures decreased by 3.0 percent, compared with an increase of 1.8 percent in the third quarter; equipment and software, increased by 10.0 percent down from an increase of 17.6 percent in the third quarter; and real residential fixed investment increased by 10.6 percent down from an increase of 21.9 percent in the third quarter. In contrast, real exports of goods and services increased by 19.1 percent in the fourth quarter up from 9.9 percent increase in the third quarter; and real imports of goods and services, increased by 11.3 percent up from an increase of 0.8 percent in the third quarter.

Real federal government consumption expenditures and gross investment played a less pronounced role in the GDP rise in the fourth quarter of 2003, increasing by only 0.7 percent compared with an increase of 1.1 percent in the third quarter of 2003.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased by 1.0 percent in the fourth quarter of 2003 compared with an increase of 1.8 percent in the third quarter. Excluding food and energy prices, the price index for gross domestic purchases increased by 1.1 percent in the fourth quarter of 2003, compared with an increase of 1.8 percent in the third.

Gross Domestic Product for 2003

In 2003, real GDP increased by 3.1 percent following an increase of 2.2 percent in 2002, reflecting the impact of increases in its major contributors: personal consumption expenditures, federal government spending, equipment and software, residential fixed investment, and exports and imports. Personal consumption expenditure increased by 3.1 percent compared with an increase of 3.4 percent in 2002. Real nonresidential fixed investment increased by 2.8 percent following a decline of 7.2 percent in 2002. Equipment and software increased by 5.2 percent compared with a decline of 2.8 percent in 2002. Exports of goods and services increased by 1.9 percent compared with a decline of 2.4 percent. Imports of goods and services--a subtraction from GDP-increased by 3.7 percent following an increase of 3.3 percent in 2002. The price index for gross domestic purchases increased 1.9 percent in 2003, compared with an increase of 1.4 percent in 2002.

Measured from the fourth quarter of 2002 to the fourth quarter of 2003, real GDP increased by 4.3 percent in 2003, compared with an increase of 2.8 percent in 2002. The price index for gross domestic purchases increased by 1.6 percent during 2003, compared with an increase of 1.7 percent during 2002.

In other G-7 economies, the annualized rates of real GDP growth were as follows. In the United Kingdom, the economy grew by 3.8 percent in the fourth quarter of 2003, and it grew by 2.5 percent in the year through the fourth quarter of 2003. In Germany, the economy grew by 0.9 percent in the third quarter but grew by 0.2 percent in the year through the fourth quarter of 2003. In Japan, the economy grew at a brisk rate of 7.0 percent in the fourth quarter and by 3.6 percent in the year through the fourth quarter of 2003. In Italy, the economy grew by zero percent in the fourth quarter, but grew by 0.1 percent in the year through the fourth quarter of 2003. In France, the economy grew by 2.0 percent in the fourth quarter of 2003, but grew by 0.5 percent in the year through the fourth quarter of 2003. In Canada, the economy grew by 1.1 percent in the third quarter of 2003, but grew by 1.0 percent in the year through the third quarter of 2003. For EU members linked by the euro...

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