United States Economy 1997

Economy - overview The US has the most powerful, diverse, and technologically advancedeconomy in the world, with a per capita GDP of $28,600, the largest amongmajor industrial nations. In this market-oriented economy, private individualsand business firms make most of the decisions, and government buys neededgoods and services predominantly in the private marketplace. US business firmsenjoy considerably greater flexibility than their counterparts in WesternEurope 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 entryin their rivals' home markets than the barriers to entry of foreign firmsin US markets. In all economic sectors, US firms are at or near the forefrontin technological advances, especially in computers, and medical, aerospace,and military equipment, although their advantage has narrowed since the endof World War II. The onrush of technology largely explains the gradual developmentof a "two-tier labor market" in which those at the bottom lack the educationand the professional/technical skills of those at the top and, more and more,fail to get pay raises, health insurance coverage, and other benefits. Theyears 1994-96 witnessed moderate gains in real output, low inflation rates,and a drop in unemployment below 6%. Long-term problems include inadequateinvestment in economic infrastructure, rapidly rising medical costs of anaging population, sizable budget and trade deficits, and stagnation of familyincome in the lower economic groups. The outlook for 1997 is for continuedmoderate growth, low inflation, and about the same level of unemployment.

GDP purchasing power parity - $7.61 trillion (1996 est.)

GDP - real growth rate 2.4% (1996 est.)

GDP - per capita purchasing power parity - $28,600 (1996 est.)

GDP - composition by sector
agriculture: 2%
industry: 23%
services: 75% (1996 est.)

Inflation rate - consumer price index 3% (1996 est.)

Labor force
total: 133.943 million (includes unemployed) (1996)
by occupation: managerial and professional 28.8%, technical, sales and administrativesupport 29.7%, services 13.6%, manufacturing, mining, transportation, andcrafts 25.1%, farming, forestry, and fishing 2.8%

Unemployment rate 5.4% (1996)

Budget
revenues: $1.351 trillion
expenditures: $1.514 trillion, including capital expenditures of $NA (1995)

Industries leading industrial power in the world, highly diversified and technologicallyadvanced; petroleum, steel, motor vehicles, aerospace, telecommunications,chemicals, electronics, food processing, consumer goods, lumber, mining

Industrial production growth rate 3.1% (1996)

Electricity - capacity 702.7 million kW (1995)

Electricity - production 3.5357 trillion kWh (1995)

Electricity - consumption per capita 11,636 kWh (1994 est.)

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

Exports
total value: $584.7 billion (f.o.b., 1995)
commodities : capital goods, automobiles, industrial supplies and raw materials, consumergoods, agricultural products
partners: Canada 22%, Western Europe 21%, Japan 11%, Mexico 8% (1995)

Imports
total value: $771 billion (c.i.f., 1995)
commodities: crude oil and refined petroleum products, machinery, automobiles, consumergoods, 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$ - 0.6023 (January 1997), 0.6403 (1996),0.6335 (1995), 0.6529 (1994), 0.6658 (1993), 0.5664 (1992); Canadian dollars(Can$) per US$ - 1.3486 (January 1997), 1.3635 (1996), 1.3724 (1995), 1.3656(1994), 1.2901 (1993), 1.2087 (1992); French francs (F) per US$ - 5.4169 (January1997), 5.1155 (1996), 4.9915 (1995), 5.5520 (1994), 5.6632 (1993), 5.2938(1992); Italian lire (Lit) per US$ - 1,568.1 (January 1997), 1,542.9 (1996),1,628.9 (1995), 1,612.4 (1994), 1,573.7 (1993), 1,232.4 (1992); Japanese yen(%) per US$ - 118.02 (January 1997), 108.78 (1996), 94.06 (1995), 102.21(1994), 111.20 (1993), 126.65 (1992); German deutsche marks (DM) per US$ -1.6043 (January 1997), 1.5048 (1996), 1.4331 (1995), 1.6228 (1994), 1.6533(1993), 1.5617 (1992)

Fiscal year 1 October - 30 September

NOTE: The information regarding United States on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United States Economy 1997 information contained here. All suggestions for corrections of any errors about United States Economy 1997 should be addressed to the CIA.