It goes without saying that the US takes pride in having one of the largest economies across the globe in terms of Gross Domestic Product (GDP) and net wealth. This year, the US economy secured the seventh-highest per capita GDP (purchasing power parity). While it has seen its ups and downs, the fact that the economy of the United States of America is still among the top is quite telling.
But how much is the US economy worth? Why is it as strong as it is today? We will answer these and other questions in this article.
The Secrets behind a Healthy US Economy
There are countless reasons why the US economy is as strong and successful as it is today. For starters, it is rich in natural resources i.e. coal, bauxite, nickel, etc. Additionally, an impressively high productivity rate, coupled with a well-crafted infrastructure, has made the US economy what it is today.
Moreover, it should be stated here that while growing its economy, the US was lucky enough to not come across many hurdles. This resulted in a smooth incline in the nation’s economy. Moreover, the fact that American citizens are encouraged to chase their dreams and indulge in innovative practices is also one of the reasons behind its growth.
Over the years, the US has taken extra care to keep its economy stable by preventing hyperinflation for the most part and maintaining a stable monetary policy.
Also, the USA has been fortunate enough to not take any major hits domestically for the better part of the last century. This has resulted in the sustenance of its economy.
The Worth of the US Economy
According to the IMF, the US economy was sized at a whopping $21.44 trillion in 2019 in terms of GDP (PPP). This was an impressive increase from the year prior in which the economy was valued at $20.58 trillion. The initial predictions for the state of the US economy by the end of 2020 were impacted by the unexpected arrival of COVID-19.
It’s interesting to note that the IMF data also indicates that the US economy makes up nearly a quarter (23.6%) of the global economy. What’s also interesting is the fact that all the countries that do not fall in the top 20 (in terms of economy) collectively make up less than a quarter of the global economy. This tells us where the power truly lies.
How well is the US Economy recovering from COVID-19?
All projections and estimates went out the door when the COVID-19 pandemic unleashed its wrath on the entire world. Of course, the economy took a massive hit in the wake of this disaster. In fact, the damage done to the economy was so severe that the US economy hasn’t recovered fully from it with the year coming to an end.
When it comes to tracking how well has the US economy recovered from the effects of COVID-19, it can be seen that the nation’s economy is functioning at only 79% of the pre-pandemic levels. Add to the fact that the holiday season that kicked off with Thanksgiving day resulted in people visiting restaurants less often.
Additionally, the pandemic has been forcing people to save more and spend less.
As for bringing back the jobs, around 245,000 jobs were added last month, causing the unemployment rate to stumble to 6.7%. In short, the US economy still has to add nearly 10 million (9.8 million to be precise) jobs before it can reach the status it was enjoying back in February.
In short, when you look at the US economy over the decades, you will realize what this country has done many things the right way that other nations could learn. Today, America boasts one of the strongest economies fueled by technology. Moreover, the US dollar has emerged as the staple of international transactions. If that didn’t convince you about the strength of the US economy, maybe this will: the US commercial banks boasted $20 trillion in assets at least as of August of this year.
The Robust Economy of America – FAQs
1- China ($29.47 trillion)
2- United States: ($22.32 trillion)
3- India: ($12.36 trillion)
4- Japan: ($5.89 trillion)
5- Germany: ($4.59 trillion)
6- Russia: ($4.52 trillion)
7- Indonesia: ($4.01 trillion)
8- Brazil: ($3.60 trillion)
9- United Kingdom: ($3.24 trillion)
10- France ($3.16 trillion)
1- A large population that includes highly-educated workers
2- A centralized system of banking
3- A well-crafted financial system
4- An appealing immigration policy that ropes in skilled workers from all over the world
5- The US has not been a casualty of war for quite some time now.