Economy - overview The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $36,300. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy 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. 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 comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The years 1994-2000 witnessed solid increases in real output, low inflation rates, and a drop in unemployment to below 5%. The year 2001 witnessed the end of the boom psychology and performance, with output increasing only 0.3% and unemployment and business failures rising substantially. The response to the terrorist attacks of September 11 showed the remarkable resilience of the economy. Moderate recovery is expected in 2002, with the GDP growth rate rising to 2.5% or more. A major short-term problem in first half 2002 was a sharp decline in the stock market, fueled in part by the exposure of dubious accounting practices in some major corporations. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade deficits, and stagnation of family income in the lower economic groups.

GDP purchasing power parity - $10.082 trillion (2001 est.)

GDP - real growth rate 0.3% (2001 est.)

GDP - per capita purchasing power parity - $36,300 (2001 est.)

GDP - composition by sector
agriculture: 2%
industry: 18%
services: 80% (2001 est.)

Population below poverty line 12.7% (2001 est.)

Household income or consumption by percentage share
lowest 10%: 1.8%
highest 10%: 30.5% (1997)

Distribution of family income - Gini index 40.8 (1997)

Inflation rate (consumer prices) 2.8% (2001)

Labor force 141.8 million (includes unemployed) (2001)

Labor force - by occupation managerial and professional 31%, technical, sales and administrative support 28.9%, services 13.6%, manufacturing, mining, transportation, and crafts 24.1%, farming, forestry, and fishing 2.4% (2001)
note: figures exclude the unemployed

Unemployment rate 5% (2001)

Budget
revenues: $1.828 trillion
expenditures: $1.703 trillion, including capital expenditures of $NA (1999)

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 -3.7% (2001 est.)

Electricity - production 3,799.944 billion kWh (2000)

Electricity - production by source
fossil fuel: 70.76%
hydro: 7.19%
other: 2.21% (2000)
nuclear: 19.84%

Electricity - consumption 3.613 trillion kWh (2000)

Electricity - exports 14.829 billion kWh (2000)

Electricity - imports 48.879 billion kWh (2000)

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

Exports $723 billion (f.o.b., 2001 est.)

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

Exports - partners Canada 22.4%, Mexico 13.9%, Japan 7.9%, UK 5.6%, Germany 4.1%, France, Netherlands (2001)

Imports $1.148 trillion (f.o.b., 2001 est.)

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

Imports - partners Canada 19%, Mexico 11.5%, Japan 11.1%, China 8.9%, Germany 5.2%, UK, Taiwan (2001)

Debt - external $862 billion (1995 est.)

Economic aid - donor ODA, $6.9 billion (1997)

Currency US dollar (USD)

Currency code USD

Exchange rates British pounds per US dollar - 0.6981 (January 2002), 0.6944 (2001), 0.6596 (2000), 0.6180 (1999), 0.6037 (1998), 0.6106 (1997); Canadian dollars per US dollar - 1.6003 (January 2002), 1.5488 (2001), 1.4851 (2000), 1.4857 (1999), 1.4835 (1998), 1.3846 (1997); French francs per US dollar - 5.65 (January 1999), 5.8995 (1998), 5.8367 (1997); Italian lire per US dollar - 1,668.7 (January 1999), 1,763.2 (1998), 1,703.1 (1997); Japanese yen per US dollar - 132.66 (January 2002), 121.53 (2001), 107.77 (2000), 113.91 (1999), 130.91 (1998), 120.99 (1997); German deutsche marks per US dollar - 1.69 (January 1999), 1.9692 (1998), 1.7341 (1997); euros per US dollar - 1.1324 (January 2002), 1.1175 (2001), 1.08540 (2000), 0.93863 (1999)
note: financial institutions in France, Italy, and Germany and eight other European countries started using the euro on 1 January 1999 with the euro replacing the local currency in consenting countries for all transactions in 2002

Fiscal year 1 October - 30 September

NOTE: The information regarding United States on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United States Economy 2002 information contained here. All suggestions for corrections of any errors about United States Economy 2002 should be addressed to the CIA.