Economy - overview:

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $47,200. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The war in March-April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq, required major shifts in national resources to the military. Soaring oil prices between 2005 and the first half of 2008 threatened inflation and unemployment, as higher gasoline prices ate into consumers' budgets. Imported oil accounts for about 60% of US consumption. Long-term problems include inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of wages in lower-income families. The merchandise trade deficit reached a record $840 billion in 2008 before shrinking to $507 billion in 2009, and ramping back up to $647 billion in 2010. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and other industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion

fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. Approximately two-thirds of these funds were injected into the economy by the end of 2010. In 2010, the US budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources remained lower, as a percentage of GDP, than that of any other developed country. In March 2010, President OBAMA signed a health insurance reform bill into law that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a bill designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. GDP (purchasing power parity):

$14.66 trillion (2010 est.) country comparison to the world: 2 $14.25 trillion (2009 est.) $14.64 trillion (2008 est.) note: data are in 2010 US dollars GDP (official exchange rate):

$14.66 trillion (2010 est.) GDP - real growth rate:

2.8% (2010 est.) country comparison to the world: 127 -2.6% (2009 est.)

0% (2008 est.) GDP - per capita (PPP):

$47,200 (2010 est.) country comparison to the world: 11 $46,400 (2009 est.) $48,100 (2008 est.) note: data are in 2010 US dollars GDP - composition by sector:

agriculture: 1.2% industry: 22.2% services: 76.6% (2010 est.) Labor force:

153.9 million country comparison to the world: 4 note: includes unemployed (2010 est.) Labor force - by occupation:

farming, forestry, and fishing: 0.7% manufacturing, extraction, transportation, and crafts: 20.3% managerial, professional, and technical: 37.3% sales and office: 24.2% other services: 17.6%

note: figures exclude the unemployed (2009) Unemployment rate:

9.6% (2010 est.) country comparison to the world: 107 9.3% (2009 est.) Population below poverty line:

15.1% (2010 est.) Household income or consumption by percentage share:

lowest 10%: 2% highest 10%: 30% (2007 est.) Distribution of family income - Gini index:

45 (2007) country comparison to the world: 40 40.8 (1997) Investment (gross fixed):

11.9% of GDP (2010 est.) country comparison to the world: 178 Budget:

revenues: $2.162 trillion expenditures: $3.456 trillion (2010 est.)

Taxes and other revenues:

14.7% of GDP (2010 est.) country comparison to the world: 188 Budget surplus (+) or deficit (-):

-8.8% of GDP (2010 est.) country comparison to the world: 191 Public debt:

62.9% of GDP (2010 est.) country comparison to the world: 29 54.1% of GDP (2009 est.)

Economy - overview:

Internally, the EU has abolished trade barriers, adopted a common currency, and is striving toward convergence of living standards. Internationally, the EU aims to bolster Europe's trade position and its political and economic power. Because of the great differences in per capita income among member states (from $7,000 to $78,000) and in national attitudes toward issues like inflation, debt, and foreign trade, the EU faces difficulties in devising and enforcing common policies. Eleven established EU member states, under the auspices of the European Economic and Monetary Union (EMU), introduced the euro as their common currency on 1 January 1999 (Greece did so two years later), but the UK and Denmark have 'opt-outs' that allow them to keep their national currencies, and Sweden has not taken the steps needed to participate. Between 2004 and 2007, the EU admitted 12 countries that are, in general, less advanced economically than the other 15. Of the 12 most recent member states, only Slovenia (1 January 2007), Cyprus and Malta (1 January 2008), Slovakia (1 January 2009), and Estonia (1 January 2011) have adopted the euro; the remaining states other than the UK and Denmark are legally required to adopt the currency upon meeting EU's fiscal and monetary convergence criteria. The EU has recovered from the global financial crisis faster than expected, with business investment growing by an estimated 2% in 2010, but with public investment and housing development lagging. Strong corporate profits should enable this recovery to continue in 2011. Nevertheless, significant risks to growth remain, including, high official debts and deficits, aging populations, over-regulation of nonfinancial businesses, and doubts about the sustainability of the EMU. In June 2010, prompted by the Greek financial crisis, the EU and the IMF set up a $1 trillion bailout fund to rescue any EMU member in danger of default, but it has not calmed market jitters that have diminished the value of the euro. Discussions are currently under way to create a permanent European Stabilization Mechanism (ESM) in 2013, when the existing European Financial Stability Facility expires. GDP (purchasing power parity):

$14.82 trillion (2010 est.) country comparison to the world: 1 $14.56 trillion (2009 est.) $15.18 trillion (2008 est.)

note: data are in 2010 US dollars GDP (official exchange rate):

$16.07 trillion (2010 est.) GDP - real growth rate:

1.8% (2010 est.) country comparison to the world: 152 -4.1% (2009 est.) 0.6% (2008 est.) GDP - per capita (PPP):

$32,700 (2010 est.) country comparison to the world: 42 $32,200 (2009 est.) $33,700 (2008 est.) note: data are in 2010 US dollars GDP - composition by sector:

agriculture: 1.8% industry: 25% services: 73.2% (2010 est.) Labor force:

227.5 million (2010 est.)

country comparison to the world: 3 Labor force - by occupation:

agriculture: 5.6% industry: 27.7% services: 66.7% (2007 est.) Unemployment rate:

9.6% (2010 est.) country comparison to the world: 108 9.1% (2009 est.) Population below poverty line:

note - see individual country entries of member states Household income or consumption by percentage share:

lowest 10%: 2.8% highest 10%: 25.2% (2003 est.) Distribution of family income - Gini index:

30.4 (2009 est.) country comparison to the world: 116 31.2 (1996 est.) South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors; a stock exchange that is the 18th largest in the world; and modern infrastructure supporting a relatively efficient

distribution of goods to major urban centers throughout the region. At the end of 2007, South Africa began to experience an electricity crisis. State power supplier Eskom encountered problems with aged plants, necessitating "load-shedding" cuts to residents and businesses in the major cities. Growth was robust from 2004 to 2007 as South Africa reaped the benefits of macroeconomic stability and a global commodities boom, but began to slow in the second half of 2007 due to the electricity crisis and the subsequent global financial crisis' impact on commodity prices and demand. GDP fell nearly 2% in 2009. Unemployment remains high and outdated infrastructure has constrained growth. Daunting economic problems remain from the apartheid era - especially poverty, lack of economic empowerment among the disadvantaged groups, and a shortage of public transportation. South Africa's former economic policy was fiscally conservative, focusing on controlling inflation, and attaining a budget surplus. The current government largely follows the same prudent policies, but must contend with the impact of the global crisis and is facing growing pressure from special interest groups to use state-owned enterprises to deliver basic services to lowincome areas and to increase job growth. More than a quarter of South Africa's population currently receives social grants. GDP (purchasing power parity):

$524 billion (2010 est.) country comparison to the world: 26 $509.8 billion (2009 est.) $518.5 billion (2008 est.) note: data are in 2010 US dollars GDP (official exchange rate):

$357.3 billion (2010 est.) GDP - real growth rate:

2.8% (2010 est.)

country comparison to the world: 128 -1.7% (2009 est.) 3.6% (2008 est.) GDP - per capita (PPP):

$10,700 (2010 est.) country comparison to the world: 104 $10,400 (2009 est.) $10,600 (2008 est.) note: data are in 2010 US dollars GDP - composition by sector:

agriculture: 2.5% industry: 30.8% services: 66.8% (2010 est.) Labor force:

17.39 million economically active (2010 est.) country comparison to the world: 35 Labor force - by occupation:

agriculture: 9% industry: 26% services: 65% (2007 est.) Unemployment rate:

24.9% (2010 est.) country comparison to the world: 174 24% (2009 est.) Population below poverty line:

50% (2000 est.) Household income or consumption by percentage share:

lowest 10%: 1.3% highest 10%: 44.7% (2000)