The US Economy in the next Five Years and its Impact in the Organization's Growth Plan
The US economy is constantly changing and transforming the world economy in the coming decades. It just makes financial sense for firms and businesses to start facing the challenges now and create a strategic growth plan based on the statistics and information that is currently on hand.
Managers tend to spend a significant portion of their time dealing with government regulations. Firms will face challenging decisions to tackle any factors slowing down the economic growth today. Forecast based on current and past years are studied to predict where the economy will turn in the next five years. It is crucial as this affect the future of the firm.
Economic Outlook Forecast and Comparison to Forecast for the next Five Years
The history of the changes in the US Gross Domestic Product (GDP) is maintained by the Bureau of Economic Analysis (BEA) through a quarterly report since 1929 (Amadeo, 2016). BEA meaures both the nominal GDP and the real GDP in order to determine the growth rate on the GDP and the GDP per capita.
The Gross Domestic Product is separated into several components. One component used to measure GDP is nominal GDP. Nominal DGP indicates the absolute output of a country and is measured quarterly by the Bureau of Economic Analysis (BEA) and is the raw measurement that estimates price increases of products into the GDP (Amadeo, 2014). The BEA must adjust the estimates monthly when updates are received to remain accurate (Amadeo, 2014).
In normal times beginning the year 2010, a 2.3 percent GDP growth rate can be considered good for the United States. However, the GDP rate went down to 1.6% in 2011 resulting from the Japan earthquake and Mississippi River Flood. The rate began picking up in 2012 due to the 2012 Presidential election and the fiscal cliff. Still there was uncertainty that was looming during that year because of the European...