Composition of US growth – Expenditure Approach C+I+G+(X-M)

Below is a chart from the National Australia Bank publication “AustralianMarkets Weekly”. It is interesting to see how each area contributes (or has a negative impact) to US growth. This is particularly useful when doing GDP Expenditure approach in Unit 5 of teh A2 course where you can breakdown the equation C+I+G+(X-M).

Some points to note:

* Consumption has started to increase from the negative status it had post GFC.
* Net exports after being positive in early 2009 have dropped into negative status with only small positive changes of late
* Business investment has started to creep into a positive contributor to GDP
* Government contributions to GDP have varied during the period with a negative impact in 2010 and 2011 before assisting GDP in Q3 2012.


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