A Decrease in the GDP - Essay Example

At this point (late 2003, early 2004) we see a period of particularly fast growth (2003q3 9.3%, 2003q4 5.5%, 2004q1 8.1%) (Bureau of Economic Analysis, 2006). This may have been caused by government initiatives to give the economy a short-term boost for the year of the election (2004). If these initiatives were put into play half-way through 2003, it's possible that they were quite successful initially but only for a short time, and not very far into 2004. Although the GDP does rise in 2004 and 2005, it's growth has been decelerating ever so slightly over the past two years.

Still, it remains fairly stable. The recent stability of the economy, despite extremely high energy prices, can be attributed to the relatively. At this point (late 2003, early 2004) we see a period of particularly fast growth (2003q3 9.3%, 2003q4 5.5%, 2004q1 8.1%) (Bureau of Economic Analysis, 2006). This may have been caused by government initiatives to give the economy a short-term boost for the year of the election (2004). If these initiatives were put into play half-way through 2003, it's possible that they were quite successful initially but only for a short time, and not very far into 2004.

Although the GDP does rise in 2004 and 2005, it's growth has been decelerating ever so slightly over the past two years. Still, it remains fairly stable. The recent stability of the economy, despite extremely high energy prices, can be attributed to the relatively low unemployment rate throughout the last year (Sniderman, 2006). Sniderman, M. (April 2006). The Economy in Perspective. Research Department of the Federal Reserve Bank of Cleveland. Retrieved April 15, 2006, from www.clevelandfed.

org/Research/ET2006/0306/eip.pdf. Two formerly undeveloped economies, that of Singapore and that of Hong Kong, have shown unprecedented growth in the past fifty years. However, developing countries would benefit more from following an economic model similar to that of Singapore given the current economic trends and conditions.