Author Name: Manpreet

The US economy is the largest economy of the world. It is the most significant part of the world economy and can affect the international trade drastically. The US economy is also termed as the consumer economy as it around two-third of its total production is driven by the consumption of its own people. The fundamental feature of the US economy is its dependence on its people for the decision making. In other words, the supply and demand factors are directly driven by the consumers of this economy. Moreover, there is negligible amount of interference or involvement by the government and the court.

The GDP of the US economy was estimated to be 13.8 trillion USD in the year 2007. Undoubtedly, since years the economy has successfully maintained a stable growth rate and a very low unemployment rate. Moreover, it has also sustained high levels of research along with capital-investment. The undeniable fact is that, during the year 2008, around 72 percent of the US economic activity came from its consumers.

In the US economy, over 78 percent of the GDP is made up of services, more than 20 percent of it was due to industry sector and even less than 1 percent was due to agriculture. The high debt levels is a major problem faced by the US economy, as a large number of American consumers are highly dependant on the debts and even tend to re-mortgage their houses against higher loans. In the beginning of the year 2008, the US federal debt was calculated to be 9.2 trillion USD, which was almost 67 percent of the GDP of the US economy. The US economy gets these huge debts funded by the central bank and the sovereign wealth funds from Europe, Asia and Middle East.