Report Essay Example | Topics and Well Written Essays - 1500 words - 4

Report - Essay Example The four components are, Consumption, Investment, Government Purchases and Net exports. 2008 The period under consideration is the two last quarters in 2008 i.e. the third and fourth quarters. In the third quarter, the US GDP decreased by -3.7% , this decrease was informed by a ragged growth in the four areas, Consumption, Investment, Net exports, and Government expenditure. Consumption was down to -3.8%, investment went down to -16.5%, and government expenditure was the only positive component at 4.3%. In the fourth quarter GDP deteriorated further registering a contraction to -8.9%. This contraction was informed by a -5.1% contraction in consumption, -33.9% contractions in investment and a further decline of government expenditure to 1.6%. 2009 In 2009, though the GDP was still recording negative GDP, there was a slight improvement as growth went up to -5.3% compared to the -8.9% recorded in the last quarter of 2008. This slight growth in GDP was informed by a -1.6 growth in consum ption, a further decline to -43% in investment, and a slight increase in government expenditure from 1.6% to 1.8%. In the second quarter the GDP continued to improve from -5.3% the previous quarter to -0.3%. This marked improvement was as a result of -1.8% decline in consumption (compared to -1.6% the previous quarter), -27.1% increase in investment, and a marked improvement of government spending to 9.6%. In the third quarter, the GDP continued to grow, for the first time in four quarters it recorded a positive figure of 1.4%. This was informed by a 2.1% growth in consumption, a -1.7% improvement in investment, and a 3.7 rise in government spending/expenditure. In the last quarter of 2009, the GDP increased further to a marked rise of 4.0%. In this quarter, consumption remained the same, investment went up by 41.4%, and government spending went up by 1.1%. 2010 In the first quarter of 2010, the GDP failed to register continued growth from the figures recorded in the last quarter of 2009. Instead, it grew by 2.3% which was a 1.7% decline in growth. This was informed by a 2.5% growth in consumption, a 19.8% growth in investment and