Jamaica and United States: An Analysis of GDP
Comparison of Jamaica and U.S. GDP
In 2009 U.S. dollars Jamaica's Gross Domestic Product (GDP) based on purchasing power parity registered at 23.76 billion (CIA Factbook- Jamaica). In contrast the United States of America produced a Gross Domestic Product of 14.12 trillion dollars in 2009 dollars (CIA Factbook- U.S.). Respectively these figures translate to a per capita GDP of $8,400.00 dollars for Jamaica (CIA Factbook- Jamaica) and $46,000.00 for the United States (CIA Factbook- U.S.). Given the distinct disparities in GDP, an analysis of the components comprising the GDP calculation provides useful insight into the similarities and differences inherent in the two nations.
GDP is comprised of four components: consumption expenditures, investment expenditures, government purchases, and net exports. Taken in aggregate these components detail "the market value of all final goods and services produced within a country in a given period of time" (Mankiw, G.). One of the striking similarities between the two countries is the reliance on a service economy to fuel economic growth. In 2009, Jamaica's service economy accounted for 63.9% of GDP (CIA Factbook-Jamaica), while for the U.S.; services totaled 76.9% of the economy (CIA Factbook-U.S.).
Consumer Expenditure
Consumption expenditures, "spending by households on goods and services" (Mankiw, G.) represents an enormous percentage of both the Jamaican and U.S. economies. For Jamaica the consumption figure is 81.6% of GDP (Trading Economics- Jamaica),...
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1% and agriculture 6.0%. ("Jamaica," 2010) The U.S. is more heavily focused on services, with this accounting for 76.9% of the GDP. This is followed by: industry (coming in at 21.9%) and agriculture (accounting for 1.2%). ("United States," 2010) Labor Force The labor force of Jamaica is currently 1.311 million people. ("Jamaica," 2010) While the labor force of the United States is 154.2 million. ("United States," 2010) Labor Force by Occupation The labor force
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