Sunday, March 18, 2018

GDP difference between US and Euro Area countries (19 countries)

After doing some research at oecd.stat public webpage. I figure it out that there is a difference between both countries in how the GDP is divided.

If we look at the "Gross domestic product (expenditure approach)" for both.

EURO AREA (19 countries)
U.S.
11165452.30
Gross domestic product (expenditure approach
18624475
8345618.60
75%
Final consumption expenditure
83%
15478782
6073240.00
54%
Households and Non-profit institutions serving households
69%
12820694
2272378.60
20%
Final consumption expenditure of general government
14%
2658088
490648.00
External balance of goods and services
-521239
2329185.7
Gross capital formation
3666933

It`s interesting to check that meanhwile euro area household consumption represents 54% of the GDP , for US, this is almost a 70%. Huge difference in my opinion.

In order to equalize a little bit the final consumption expenditure, Euro are governments needs to "expend" money and introduce consumption on the equation. 20% of GDP in euro area is due to governments while in US only 14%



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