Gross Domestic Product
Gross domestic product (GDP) is defined as the total market value of all the goods and services produced within the borders of a nation each year. Gross domestic product includes all goods and services produced by either citizen-supplied or foreign-supplied resources employed within the country. GDP is a monetary measure to compare the relative values of the vast number of goods and services produced in different years. GDP can be viewed from an expenditures approach as the sum of all the money spent in buying the product or service. Real GDP is that which has been inflated or deflated to reflect changes in the price level. GDP can also be viewed as the income approach, which is the income, derived or created from producing the product or service. GDP through 2009 has been forecasted at 3.7%, 3.4%, and 3.1%, a small decrease (www.cbo.gov). If accurate, this data proves a huge increase since 2001 when GDP was 2.2%, 2002 at 1.3%, and 2003 at 2.5% (www.cbo.gov). Adversely, the Mortgage Banker 's Association predicts strong economic growth over the next two years with GDP at 4.1% through 2007. Economists at Comerica Bank in Michigan also have the same forecast prediction for GDP in the upcoming years of 4% (www.comerica.com).
In the Comerica forecast, the predicted path of unemployment rates will gradually decline over the next few years. The current rate is 5.4 to 5.1 in 2007. In recent years, unemployment rates have been declining from 6.0 in 2003. With unemployment rates holding steady over the next few years, spending will continue to increase in areas of buying homes and investing.
Housing starts reached the highest level in two decades during the first quarter of 2005. The main reason for this increase has been steady interest rates (Haughey, 2005). Looking forward, a number of challenges face the housing construction market including commercial space, potential rising interest rates, and reduced tax revenues eventually impacting public works and
In the Comerica forecast, the predicted path of unemployment rates will gradually decline over the next few years. The current rate is 5.4 to 5.1 in 2007. In recent years, unemployment rates have been declining from 6.0 in 2003. With unemployment rates holding steady over the next few years, spending will continue to increase in areas of buying homes and investing.
Housing starts reached the highest level in two decades during the first quarter of 2005. The main reason for this increase has been steady interest rates (Haughey, 2005). Looking forward, a number of challenges face the housing construction market including commercial space, potential rising interest rates, and reduced tax revenues eventually impacting public works and
References: Brown, M. (2005). Frank Holmes. Euromoney: March 2005. Vol.36, Iss.431, p.1. Retrieved from www.web28.epnet.com on May 20, 2005. Calbreath, (2005). Economists forecasting a recession. The Union Tribune, March 15, 2005 Haughey, J. April, 2005. Construction Equipment. pg 32. Retrieved from Proquest Database on May 19, 2005. The Economist (2005). Economic and Financial Indicators. London: March 19, 2005. Vol.374, Iss.8418, p.118. Retrieved from www.proquest.umi.com on May 19, 2005. http://minneapolisfed.org/pubs/region/99-03/beige.cfm. Retrieved data on May 19, 2005. http://stats.bls.gov.com. Retrieved data on May 19, 2005. http://www.investorguide.com/igueconindicator.html www.cbo.gov. Retrieved data on May 19, 2005. www.comerica.com www.mortgagebankers.org. Retrieved data on May 18, 2005. www.neatideas.com. Retrieved data on May 18, 2005.