Private sector makes up 87 percent of the GDP --- job collapse would decimate those contributions
Eduardo Martínez Abscal 14, Professor in the Financial Management Department of IESE Business School. He holds a Doctorate in Economics and Business from the University of Barcelona, and an MBA from IESE, University of Navarra, 12-11-14, “Who contributes to the growth of the US Economy?” https://blog.iese.edu/economics/2014/12/11/who-contributes-to-the-growth-of-the-us-economy/ // KG (Note: There is a table attached after the second paragraph, you’ll probally need to go out of draft mode to see it)
The US Bureau of Economic Analysis provides interesting data on the contribution of 93 different industries (and groups of industries) to the GDP. In a previous post I analyzed the contribution of the oil industry to US GDP growth. Now I present the big picture: the contribution of every industry to the GDP and GDP growth. In other words, who is responsible for the sound growth of the US economy since the crisis of 2009?
The following is a summary of the main statistics and some conclusions (of my own) though the reader may draw his/her own conclusions.
Private companies contribute 87% of the annual GDP, and Government 13%.
Goods-producing industries account for 20% of the GDP and the remaining 67% comes from service
The most important industry groups are:
Manufacturing, 12%
Finance, insurance, real estate, rental, and leasing, 20%
Professional and business services, 12%
Educational services, health care, and social services, 8%.
The list includes 72 industries in 14 groups (presented in the table). None of the industries represents more than 5% of the GDP. My conclusion: The diversification of the US GDP is significant.
The importance of every industry in the GDP (by %) did not change between 2009 and 2013. There are no clear winners or losers from the Crisis of 2009.