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.

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%
industry: 23%
services: 75% (1997 est.)

Inflation rate - consumer price index 2% (1997)

Labor force
total: 136.3 million (includes unemployed) (1997)
by occupation: managerial 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

NOTE: The information regarding United States on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United States Economy 1998 information contained here. All suggestions for corrections of any errors about United States Economy 1998 should be addressed to the CIA.