As per Office of Advocacy, there was reduction in real gross domestic product. There was 6.3 percent drop in real GDP in the fourth quarter of 2008. There was 1.1 percent rise in GDP for the year is because of changes in GDPs components i.e., investment, consumption, net exports and government spending.
Investment
There was no improvement in investment during in 2008 which was continuing trend from 2007. During the year 2008, the real gross private domestic investment dropped 6.7 percent. The real gross private domestic investment was 5.4 during 2007. The overall investment dropped 23 percent on an annualized basis in the fourth quarter. There was growth in nonresidential investment till the second quarter of 2008. There was a decline and was 21.7 percent in the fourth quarter.
Trading
Over the past few years the exports were prioritized. The companies in US were benefited from improved quality, cheaper dollar and a renewed focus on exploring new overseas markets. There was growth in real exports by 6.2 percent for that year. There was a drop in real imports by 3.5 percent. This resulted in an improved trade deficit.
Employment
The drop in the rate of employment continued every month of 2008. There was a decline in number of nonfarm payroll workers by 3.1 million from December 2007 to December 2008. Almost 1.7 million jobs were lost in the fourth quarter of 2008.
Investment
There was no improvement in investment during in 2008 which was continuing trend from 2007. During the year 2008, the real gross private domestic investment dropped 6.7 percent. The real gross private domestic investment was 5.4 during 2007. The overall investment dropped 23 percent on an annualized basis in the fourth quarter. There was growth in nonresidential investment till the second quarter of 2008. There was a decline and was 21.7 percent in the fourth quarter.
Trading
Over the past few years the exports were prioritized. The companies in US were benefited from improved quality, cheaper dollar and a renewed focus on exploring new overseas markets. There was growth in real exports by 6.2 percent for that year. There was a drop in real imports by 3.5 percent. This resulted in an improved trade deficit.
Employment
The drop in the rate of employment continued every month of 2008. There was a decline in number of nonfarm payroll workers by 3.1 million from December 2007 to December 2008. Almost 1.7 million jobs were lost in the fourth quarter of 2008.
