Question: What Are the Components of GDP?
Answer: The components of GDP (Gross Domestic Product) will tell you what the U.S. is good at producing.
Over 70% of what the U.S. produces is for personal consumption. The remaining 30% of GDP is business investment (16%) and government (19%), of which one-third is defense.
The largest components of personal consumption include:
- More than 40% of GDP are services. The two largest components are real estate (10%) and health care (12%).
- Non-durable goods are 20% of GDP. The three largest components are food (10%), clothing (2.7%) and fuel (2.4%).
- Durable goods, such as autos (3.6%) and furniture (3%) is the smallest, at only 8% of GDP.
(The percentages given don't total, because of calculations made to net out exports from imports, and from changes in inventory.)
GDP FAQ
- What Are the Components of GDP?
- What Is the Difference Between GDP and Growth Rate?
- What Is the Ideal Growth Rate?
- What Is a Recession?
- What Is a Depression?
