Economy

Economy—overview: The US has the most powerful diverse and technologically advanced economy in the world with a per capita GDP of $30,200, the largest among major industrial nations. In this market-oriented economy private individuals and business firms make most of the decisions and government buys needed goods and services predominantly in the private marketplace. US business firms enjoy considerably greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, lay off surplus workers and develop new products. At the same time they face higher barriers to entry in their rivals' home markets than the barriers to entry of foreign firms in US markets. In all economic sectors US firms are at or near the forefront in technological advances, especially in computers and in medical aerospace and military equipment although their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and more and more fail to get pay raises health insurance coverage and other benefits. The years 1994-97 witnessed moderate gains in real output, low inflation rates and a drop in unemployment below 6%. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical costs of an aging population, sizable trade deficits and stagnation of family income in the lower economic groups. The outlook for 1998 is for continued moderate growth, low inflation and about the same level of unemployment. Two shadows for 1998 are the severe financial crises in East Asia and the exuberant level of stock prices in relation to corporate earnings

Labor force:

industry: 23%

services: 75% (1997 est.)

Inflation rate—consumer price index: 2% (1997)

total: 136.3 million (includes unemployed) (1997)

by occupation: manager

GDP: purchasing power parity—$8.083 trillion (1997 est.)

GDP—real growth rate: 3.8% (1997)

GDP—per capita: purchasing power parity—$30 200 (1997 est.)

GDP—composition by sector:

agriculture: 2%

ial and professional 29.1%; technical sales and administrative support 29.6%; services 13.5%; manufacturing, mining, transportation, and crafts 25.1%; farming, forestry, and fishing 2.7%

Unemployment rate: 4.9% (1997)

Budget:

revenues: $1.579 trillion

expenditures: $1.601 trillion including capital expenditures of $NA (1997)

Industries: leading industrial power in the world highly diversified and technologically advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, mining.

Industrial production growth rate: 3.9% (1997)

Electricity—capacity: 741.589 million kW (1995)

Electricity—production: 3.585 trillion kWh (1995)

Electricity—consumption per capita: 13 732 kWh (1995)

Agriculture—products: wheat, other grains, corn, fruits, vegetables, cotton; beef, pork, poultry, dairy products; forest products; fish.

Exports:

total value: $625.1 billion (f.o.b. 1996)

commodities: capital goods, automobiles, industrial supplies, and raw materials, consumer goods, agricultural products

partners: Canada 22%; Western Europe 21%; Japan 11%; Mexico 8% (1995)

Imports:

total value: $822 billion (c.i.f. 1996)

commodities: crude oil and refined petroleum products, machinery, automobiles, consumer goods, industrial raw materials, food, and beverages.

partners: Canada 20%; Western Europe 18%; Japan 16.5%; Mexico 8%. (1995)

Debt—external: $862 billion (1995 est.)

Economic aid:

donor: ODA $9.721 billion (1993)

Currency: 1 United States dollar (US$) = 100 cents

Exchange rates: British pounds (£) per US$—0.6115 (January 1998) 0.6106 (1997) 0.6403 (1996) 0.6335 (1995) 0.6529 (1994) 0.6658 (1993); Canadian dollars (Can$) per US$—1.4408 (January 1998) 1.3846 (1997) 1.3635 (1996) 1.3724 (1995) 1.3656 (1994) 1.2901 (1993); French francs (F) per US$—6.0836 (January 1998) 5.8367 (1997) 5.1155 (1996) 4.9915 (1995) 5.5520 (1994) 5.6632 (1993); Italian lire (Lit) per US$—1 787.7 (January 1997) 1 703.1 (1997) 1 542.9 (1996) 1 628.9 (1995) 1 612.4 (1994) 1 573.7 (1993); Japanese yen (¥) per US$—129.45 (January 1998) 120.99 (1997) 108.78 (1996) 94.06 (1995) 102.21 (1994) 111.20 (1993); German deutsche marks (DM) per US$ - 1.8167 (January 1998) 1.7341 (1997) 1.5048 (1996) 1.4331 (1995) 1.6228 (1994) 1.6533 (1993)

Fiscal year: 1 October—30 September