Tuesday, February 7, 2023

Private Consumption Expenditure and GDP in the United States

private consumption expenditure of America They represented 68.5% of its GDP in 2021 and were the main source of growth (with an expansion of 7.9% in real terms).

This result followed the devastating effects caused by the pandemic in 2020, which resulted in a real contraction of 3.8 per cent.

Durable goods posted particularly strong growth, up 18 percent.

Whereas, according to the information received world trade organization Consumer spending contributed 5.27 percentage points to the (WTO) growth. Gross Domestic Product in 2021 (5.7%), equally distributed between goods (about 2.69 percentage points) and services (about 2.58 percentage points).

Consumption of non-durables contributed 1.39 percentage points to annual GDP growth, while consumption of durables contributed 1.31 percentage points.

private consumption

Household consumption expenditure (on health care services, housing services and public services, among others) contributed 2.92 percentage points to GDP growth.

The main categories of consumer spending in 2021 were the following: food and beverage preparation services and temporary housing (0.88 percentage points), health care (0.79 percentage points), other nondurables (0.48 percentage points), clothing clothing and footwear (0.45 percentage points) 100), articles for recreational activities (0.43 percentage points), cars and parts thereof (0.37 percentage points), recreational services (0.33 percentage points) and goods and appliances for household use (0.27 percentage points).

After a period of steady economic growth in 2018 and 2019, in which US real GDP grew by 2.9 and 2.3% in each respective year, the US economy, like the world economy, entered a recession caused by the COVID-19 pandemic. Was greatly affected by the epidemic. ,

Real GDP contracted by 3.4% in 2020 after 11 consecutive years of expansion.

The economy recovered rapidly in 2021 due to the support measures adopted by the government and the easing of monetary conditions, which pushed real GDP growth to 5.7% in 2021.

ahead, Organization for Economic Cooperation and Development (OECD) predicts real GDP growth of 3.7% in 2022 and 2.4% in 2023, driven by strong private consumption and a recovery of gross fixed capital formation (which will grow by 3.8% and 3.6% in 2022 and 2023, respectively).

Nation World News Desk
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