Economy of the United States
From Wikipedia, the free encyclopedia
The United States is a highly developed social market economy.[42][43][44] It is the world's largest economy by nominal GDP; it is also the second largest by purchasing power parity (PPP), behind China.[45] It has the world's sixth highest per capita GDP (nominal) and the eighth highest per capita GDP (PPP) as of 2024.[10] The U.S. accounted for 26% of the global economy in 2023 in nominal terms, and about 15.5% in PPP terms.[11][46] The U.S. dollar is the currency of record most used in international transactions and is the world's reserve currency, backed by a large U.S. treasuries market, its role as the reference standard for the petrodollar system, and its linked eurodollar.[47] Several countries use it as their official currency and in others it is the de facto currency.[48] Since the end of World War II, the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology.[6]
Currency | United States dollar (USD) US Dollar Index |
---|---|
October 1 – September 30 | |
Trade organizations | WTO, G-20, G7, OECD, USMCA, APEC and others |
Country group |
|
Statistics | |
Population | 340,332,281 (August 30, 2023)[9] |
GDP | |
GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
GDP by component |
|
3% (2023)[13] | |
Population below poverty line | |
| |
69 out of 100 points (2023)[18] (rank 24th) | |
Labor force | |
Labor force by occupation |
|
Unemployment | |
Average gross salary | $5,407 / €5,052 monthly[21] (2022) |
$4,066 / €3,799 monthly[22][23] (2022) | |
Final consumption expenditure | 85.2% of GDP (2023)[12] |
Gross capital formation | 17.7% of GDP (2023)[12] |
10-year bond 5.09% (April 2024)[24] | |
Main industries |
|
External | |
Exports | $3.053 trillion (2023)[27] |
Export goods |
|
Main export partners | |
Imports | $3.827 trillion (2023)[27] |
Import goods |
|
Main import partners | |
FDI stock | |
Gross external debt | $27 trillion (2023)[33] |
Public finances | |
| |
–5.5% of GDP (2022)[34] | |
Revenues | $8.371 trillion[32] 33.4% of GDP (2022) |
Expenses | $9.379 trillion[32] 37.4% of GDP (2022) See Federal budget |
Economic aid | donor: ODA, $35.26 billion (2017)[35] |
$217 billion (2023)[41] | |
All values, unless otherwise stated, are in US dollars. |
The American economy is fueled by high productivity, well developed transportation infrastructure, and extensive natural resources.[49] Americans have the sixth highest average household and employee income among OECD member states.[50] In 2021, they had the highest median household income.[51] The U.S. has one of the world's highest income inequalities among the developed countries.[52][53][54] The largest U.S. trading partners are Canada, Mexico, China, Japan, Germany, South Korea, the United Kingdom, Taiwan, India, and Vietnam.[55] The U.S. is the world's largest importer and second largest exporter.[56] It has free trade agreements with several countries, including Canada and Mexico (through the USMCA), Australia, South Korea, Israel, and several others that are in effect or under negotiation.[57] U.S. has a highly flexible labor market, where the industry adheres to a hire-and-fire policy, and job security is relatively low.[58][59] Among OECD nations, the U.S. has a highly efficient and strong social security system; social expenditure stood at roughly 30% of GDP.[8][60][7]
By 1890, the United States had overtaken the British Empire as the world's most productive economy.[61] It is the world's largest producer of petroleum and natural gas.[62] In 2016, it was the world's largest trading country[63] and second largest manufacturer, with American manufacturing making up a fifth of the global total.[64] The U.S. not only has the largest internal market for goods, but also dominates the services trade. Total U.S. trade was $4.2 trillion in 2018.[65] Of the world's 500 largest companies, 121 are headquartered in the U.S.[66] The U.S. has the world's highest number of billionaires, with total wealth of $3.0 trillion.[67][68] U.S. commercial banks had $22.9 trillion in assets in December 2022.[69] U.S. global assets under management had more than $30 trillion in assets.[70][71] During the Great Recession of 2008, the U.S. economy suffered a significant decline.[72][73] The American Reinvestment and Recovery Act was enacted by the United States Congress, and in the ensuing years the U.S. experienced the longest economic expansion on record by July 2019.[74][75][76][77]
The New York Stock Exchange and Nasdaq are the world's largest stock exchanges by market capitalization and trade volume.[78][79] The U.S. has the world's largest gold reserve, with over 8,000 tonnes of gold.[80] In 2014, the U.S. economy was ranked first in international ranking on venture capital[81] and global research and development funding.[82] The U.S. spends around 3.46% of GDP on cutting-edge research and development across various sectors of the economy.[83] The U.S. has produced the world's highest number of Nobel laureates in the economics field.[84] It is also the world's fourth largest high-technology exporter.[85] The U.S. ranks second in the world by number of patent applications.[86] Consumer spending comprised 68% of the U.S. economy in 2022,[87] while its labor share of income was 44% in 2021.[88] The U.S. has the world's largest consumer market.[89] The nation's labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world.[90] The U.S. is one of the top-performing economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report, and others.[91]