GDP growth in the past 10 years: The US GDP grew at an average rate of 2.3% per year over the past 10 years, according to the Bureau of Economic Analysis . The growth rate was affected by various factors, such as changes in government policies, global economic conditions, and natural disasters.
Inflation trend in the past 10 years, and major monetary policy: The inflation rate in the US has been relatively low over the past 10 years, averaging 1.8% per year . The Federal Reserve’s major monetary policy in the past decade has been to keep interest rates low to support economic growth and employment. The Fed also implemented several rounds of quantitative easing, where it purchased large amounts of government securities to increase the money supply and stimulate the economy.
Unemployment rate trend in the past 10 years, and major indicator: The US unemployment rate declined from a peak of 10% in October 2009 to 3.5% in December 2019, before increasing to 6.0% in January 2021 due to the COVID-19 pandemic . The unemployment rate is a major indicator of the health of the labor market and the overall economy.
Wage growth trend in the past 10 years, and major indicator: Wage growth has been modest in the US over the past decade, with average hourly earnings increasing at an average annual rate of 2.2% . One major indicator of wage growth is the employment cost index, which measures the change in the cost of labor, including wages and benefits, and has been increasing at an average annual rate of 2.6% over the past decade .
Housing market, and major indicator: The US housing market experienced a major downturn in the late 2000s, but has since recovered and has been growing steadily over the past decade. A major indicator of the housing market is the Case-Shiller Home Price Index, which measures changes in home prices in 20 metropolitan areas, and has been increasing at an average annual rate of 3.7% over the past decade .
Top 3 components of the GDP and their attribution(dollar amount, and % of GDP): The three largest components of the US GDP are: personal consumption expenditures (69% of GDP, $14.4 trillion in 2021), gross private domestic investment (19% of GDP, $3.9 trillion in 2021), and government spending (17% of GDP, $3.5 trillion in 2021) .
The US balance of trade, also known as the trade balance or net exports, measures the difference between the value of the goods and services a country exports and the value of the goods and services it imports. A positive balance of trade, or trade surplus, occurs when a country exports more than it imports, while a negative balance of trade, or trade deficit, occurs when a country imports more than it exports.
In recent years, the US has experienced a persistent trade deficit, which has widened in the past decade. According to data from the US Census Bureau, the US trade deficit was $935.4 billion in 2019, an increase of 3.7% from 2018. This trend has continued into 2020 and 2021, with the trade deficit reaching record highs.
One factor contributing to the US trade deficit is the high demand for foreign goods by US consumers, which has led to a surge in imports. Another factor is the strength of the US dollar, which makes US exports more expensive and less competitive in foreign markets.
The US government has implemented various policies to address the trade deficit, including imposing tariffs on certain imports, renegotiating trade agreements, and encouraging domestic production and exports. However, these policies have been controversial and have faced criticism from both domestic and foreign parties.
Top 10 Imports: According to data from the Office of the United States Trade Representative, the top 10 imports of the United States in 2021 were as follows:
- Crude oil ($88 billion, mainly from Canada and Mexico)
- Cars ($188 billion, mainly from Japan, Mexico, and Canada)
- Pharmaceuticals ($149 billion, mainly from Ireland and Germany)
- Telecom equipment ($108 billion, mainly from China and Mexico)
- Computer equipment ($101 billion, mainly from China and Mexico)
- Refined petroleum ($73 billion, mainly from Canada and Saudi Arabia)
- Semiconductor devices ($72 billion, mainly from China and South Korea)
- Medical instruments ($65 billion, mainly from Germany and Ireland)
- Furniture ($61 billion, mainly from China and Canada)
- Apparel ($54 billion, mainly from China, Vietnam, and Bangladesh)
Top 10 Exports: According to data from the Office of the United States Trade Representative, the top 10 exports of the United States in 2021 were as follows:
- Refined petroleum ($95 billion, mainly to Mexico, Canada, and Brazil)
- Aircraft ($79 billion, mainly to Canada, China, and Japan)
- Petroleum gas ($64 billion, mainly to Mexico and Japan)
- Cars ($62 billion, mainly to Canada, China, and Mexico)
- Integrated circuits ($48 billion, mainly to China and Hong Kong)
- Pharmaceuticals ($45 billion, mainly to Canada and Belgium)
- Soybeans ($44 billion, mainly to China, Mexico, and Japan)
- Crude oil ($44 billion, mainly to Canada and China)
- Medical instruments ($37 billion, mainly to Germany and Japan)
- Ethylene polymers ($34 billion, mainly to Mexico and Canada)
Top 3 Natural Resources: The United States has a wide range of natural resources, but the top three in terms of value of production are oil, natural gas, and coal. These resources are primarily used for energy production and account for a significant portion of the country’s GDP. Other important natural resources include gold, copper, and timber.
Political Risks: The United States has faced several political risks in the past 10 years. One major risk has been the ongoing trade tensions with China, which have resulted in tariffs on a wide range of goods and increased uncertainty for businesses. The COVID-19 pandemic has also had a significant impact on the economy and created political risks related to healthcare, travel restrictions, and vaccine distribution. In addition, the country has experienced social and political unrest, particularly in the wake of the Black Lives Matter protests and the January 6, 2021 attack on the Capitol building.
Geopolitical Relationships: The United States has historically had strong political relationships with Europe and Japan, with close economic ties and shared democratic values. In recent years, however, these relationships have been strained by trade tensions and disagreements over issues such as climate change and defense spending. The relationship with China has also been contentious, with ongoing trade tensions and geopolitical rivalries. The United States has sought to balance these relationships and maintain a strong global presence through international organizations such as the United Nations and NATO.