Economic Trends

Economic Trends

Jessica Thompson

Macroeconomics

Thomas Edison State College

05/24/14

Economic trends:

The united states is the largest economy in the world while Canada which is a member of the G7 a group of the 7 wealthiest nations as the united states also performs comparably well in terms of all the economic variables. This paper considers analyses both country’s economic by looking into the their GDP, growth rate, exchange rate, inflation rate, interest rate on short term government debt, unemployment rate and the deficit rate by making comparisons and drawing similarities

GDP and GDP Growth rate

Data shows that the United states GDP as measured by real GDP was $15.47 trillion in 2012 while Canada had a real GDP of $4.1 trillion. This shows that the United States is the larger of the two economies

Diagram 1: United States and Canada real GDP

Data source: http[->0]: //[->1]research[->2].[->3]stlouisfed[->4].[->5]org[->6]/[->7]fred[->8]2/[->9]

As diagram shows, both economies GDP grew in 200 and 2012 with the United States GDP increasing from $15.05 trillion to $15.47 trillion while Canada’s GDP increased from $4.05 trillion in 2011 to $4.1trillion in 2012

Diagram 1: United States and Canada GDP percent change

Data source: http[->10]: //[->11]research[->12].[->13]stlouisfed[->14].[->15]org[->16]/[->17]fred[->18]2/[->19]

In terms of economic growth, the united states economy grew by 1.8% in 2012 compared with a growth rate of 1.3 for Canada while in 2011 the united states economy grew by 2.5% compared with Canada’s growth of 2.0% while during the world financial crisis in 2008/2009 Canada’s economy shrank by more than 4% compared with a negative growth of 2.8% for the united states economy. These facts show that the United States economy’s performance has been better compared with Canada in the last ten years and depicted by the graph in diagram 2 above.

Exchange rate

Exchange rates are used to show how much goods and...