GDP is one of the most important economic indicators that measures how well an economy is doing. It is also called gross national product (GNP) or gross domestic product (GDP). The main purpose of measuring GDP is to measure the total value added by all resident producers in the economy plus any products and services consumed outside the economy but within the borders of the country, minus imports - that is, minus foreign currency earnings from abroad.
The GDP at market prices for the year ended 31 December 2017 was $1.7 trillion; it grew 2.4% over 2016. This growth was driven by strong gains in business investment and government spending. Private consumption expenditure fell 0.3%, reflecting slower growth in household income and lower levels of private sector employment. Inflation remained low, with headline consumer price inflation averaging 1.8% per annum during 2017-18.
The United States has the largest economy in the world as measured by nominal GDP ($19.5 trillion), purchasing power parity (PPP) GDP ($20.9 trillion), and real GDP ($21.2 trillion). However, its per capita GDP ranked 11th globally in 2012, down from 8th place in 2000. By PPP terms, the US ranks first worldwide, followed by China, then Japan, Germany, France, the UK, India, Russia, Italy, Brazil, South Korea, Spain, Canada, Mexico, Indonesia, Australia, Saudi Arabia, Iran, Argentina, Sweden, Switzerland, Austria,,and Greece
The GDP per capita of the United States in current dollars is $59,037, which is higher than the average for other countries in the OECD. At market exchange rates, the U.S. dollar is undervalued against a basket of major currencies. The U.S. dollar has been declining in relative value since 1971, when Richard Nixon took the U.S. off the gold standard. Between 2009 and 2014, the U.S.'s share of global output declined from 17.6 percent to 16.6 percent, while that of China rose from 6.4 percent to 13.6 percent. Economists have attributed this shift to globalization, technological change, increased competition, and greater integration within the Asia-Pacific region.
In October 2015, the International Monetary Fund predicted that the Chinese economy would grow 7.5% in 2016, slowing to 6.5% in 2017 and 5.6% in 2018. It also estimated that China's economy will surpass Japan's in size sometime between 2027 and 2030.
GDP growth rate
The GDP growth rate measures the annualized percentage increase or decrease in the nation's gross domestic product (GDP). In general, an economy with a high GDP growth rate is growing rapidly, whereas one with a low growth rate is experiencing slower economic expansion. A negative growth rate indicates contraction.
The United States' GDP grew at 3.1% during the third quarter of 2019. This was up from 2.7% in the second quarter of 2019. During the same period, the Eurozone's GDP grew 1.3%, the United Kingdom's 0.