US GDP

US GDP

[Name of the Writer]

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US GDP

Gross domestic product is the snapshot of any nation which indicates the speed of economic growth. The article indicates that GDP increased at an increasing rate due to the high consumers spending and government expenditure. The rate of GDP increase is recorded at 1.9% in the third quarter. However, it is a little slower than the second quarter due to the decrease in investment. The demand for skilled labor is increasing by the producers which resulted in low investment. The expected GDP was 1.6% which means economy showed growth more than expectations and it is the result of high consumer spending.

Import is subtracted from the GDP because GDP includes the value of final goods and services that are produced domestically. Imports are the goods that are produced in other nations therefore; its value cannot be calculated within the GDP. However, the impact of imports is major on the economic growth of the nation. As the article indicates that due to the increase in imports, the trade deficit has been observed. Another reason for the trade imbalance is the trade war between America and China. Therefore, there is the 54.9 billion dollars trade deficit has been recorded.

The article indicates that due to high consumer spending and government expenditure GDP is increasing. However, there is the worry that consumers may be "curbing" their spending. It is because investors are decreasing their investment in the US economy. There are two reasons for the decrease in investment that are demand for skilled labor and trade war between America and China. As labor is less efficient due to which the investor is losing interest in high investment and demanding skilled labor. Besides, the aggressive approach of the government in the trade is alarming for the investors. The decrease in investment will increase the worry and fear of the future in the consumers who will in return save their spending. The increase in saving and decrease in spending by the consumers can slow down the growth of GDP ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"aMeWxXN4","properties":{"formattedCitation":"(Franck, 2019)","plainCitation":"(Franck, 2019)","noteIndex":0},"citationItems":[{"id":928,"uris":["http://zotero.org/users/local/rVaVAHaF/items/XRPTWW87"],"uri":["http://zotero.org/users/local/rVaVAHaF/items/XRPTWW87"],"itemData":{"id":928,"type":"webpage","title":"US GDP rose a better-than-expected 1.9% in the third quarter as consumers continued to spend","container-title":"CNBC","abstract":"The growth in GDP was slightly slower than in the second quarter as business investment declined.","URL":"https://www.cnbc.com/2019/10/30/us-gdp-q3-2019-first-reading.html","language":"en","author":[{"family":"Franck","given":"Thomas"}],"issued":{"date-parts":[["2019",10,30]]},"accessed":{"date-parts":[["2019",11,11]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Franck, 2019).

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Franck, T. (2019, October 30). US GDP rose a better-than-expected 1.9% in the third quarter as consumers continued to spend. Retrieved November 11, 2019, from CNBC website: https://www.cnbc.com/2019/10/30/us-gdp-q3-2019-first-reading.html