Question

What are the components of GDP? Provide statistics related to components of U.S. GDP in 2019 (write source of statistics/data).

Answer 1

The formula to calculate the components of GDP is Y = C + I + G + NX. That stands for: GDP = Consumption + Investment + Government + Net Exports, which are imports minus exports. In 2019,  U.S. GDP was 70% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports.

US GDP INCULDES -

1) Personal consumption expenditures include:

Durable goods – cars, furniture, large appliances.

Non-durable goods – clothing, food, fuel.

Services – banking, health care, education.

Consumer spending contributes almost 70% of the total United States production. In 2019, that was $13.28 trillion.

2) Business Investment.

The business investment includes purchases that companies make to produce consumer goods. But not every purchase is counted.

In 2019, business investments were $3.42 trillion. That's 18% of U.S. GDP. It's double its recession low of $1.5 trillion in 2009. In 2014, it beat its 2006 peak of $2.3 trillion.

3) Government Spending

Government expenditure was $3.30 trillion in 2019. That's 17% of total GDP. It's less than the 19% it contributed in 2006.

4) Net Exports

In 2019, imports subtracted $3.49 trillion or a little more than in 2018. Exports added $2.53 trillion, about the same as 2017 and 2018.

Source - Bureau of Economic Analysis (BEA)