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USA ECONOMY IN BRIEF

When the United States sneezes, an economists’ proverb says, the rest of the world catches a cold. Between 1995 and 2005, the United States accounted directly for one-third of global economic expansion, according to the nonprofit Council on Competitiveness. Between 1983 and 2004, soaring U.S. imports added nearly 20 percent of the increase of the world’s exports. | IIUIIIHH Jiiiiiiiiiiiiuiiiiiir ị ĩ ị ị 1 ị iịị ị ị ịị ÌỊ ị ị ị w hen the United States sneezes an economists proverb says the rest of the world catches a cold. Between 1995 and 2005 the United States accounted directly for one-third of global economic expansion according to the nonprofit Council on Competitiveness. Between 1983 and 2004 soaring U.S. imports added nearly 20 percent of the increase of the world s exports. Developing countries accounted for an increasing share of U.S. exports 32.8 percent in 1985 versus 47.0 percent in 2006 a Congressional Research Service CRS report says. Developing countries accounted for 34.5 percent of U.S. imports in 1985 and 54.7 percent. in 2006. Like a rugged four-wheel-drive vehicle crossing rough terrain the U.S. economy cruised along in the early 2000s even while hitting some big rocks a stock market crash terrorist attacks wars in Iraq and Afghanistan corporate accounting scandals widespread hurricane destruction surging energy prices sliding real estate values. After a mild recession in March-November 2001 the U.S. economy resumed expanding an average 2.9 percent during 2002-2006 while price inflation unemployment and interest rates remained relatively low. By various measures the United States remains the world s most productive competitive and influential large economy. Yet more and more the U.S. economy is itself influenced by 2 dynamic economies overseas. And it faces challenges both at home and abroad. But what do we mean by the U.S. economy anyway Qoods and Services A national economy comprises a country s production of goods and services. Real gross domestic product GDP measures such output produced by labor and property in the United States. Workers use capital and natural resources to produce goods and services. Natural resources are those supplied by planet Earth air water trees coal soil. Capital includes physical capital tools machines technology high and low . It includes intellectual property copyrights .