Why would the American economy rule for years to come?
Hit by 47 recessions since 1790, the U.S.A. has always been resilient and has continued to rule the world economy for decades now. It is recently on the recovery mode from the recession that began in December 2007 and ended in June 2009. Economic activities have been surging and business cycles have been upswinging. Thus, the overall economic and financial scenarios seem optimistic.
Here’s a look at the various reasons why the U.S.A. will continue to dominate the global economy for years:
The largest and most productive in the world
The U.S. accounts for one-fifth of global GDP with only 4.5% of the world’s population. America’s economy is nearly twice the size of China’s in nominal dollars. Plus, the U.S. is one of just a few developed countries with real GDP higher than it was before the crisis, according to the report.
World – leader in manufactured goods
Nominal manufacturing output totaled $1.9 trillion in 2012, a rise of 27% from 2009. Employment in the sector has increased by 500,000 workers since 2010, according to U.S. Trust.
One of the largest exporters of goods and services
Exports since the recession have taken off. In 2012, total exports totaled $2.2 trillion, nearly a 40% rise from 2009 levels, according to the report.
Loved by foreign investors
U.S. Foreign Direct Investment inflows in the post-crisis years racked up $736 billion. That’s 15% of the global total, according to U.S. Trust. And while people talk about investment in China, America is still on top by a landslide.
World leader in technology
People still flock to America to become tech innovators. The U.S. is home to the major social media players and beats out other countries in spending levels.
Home to the world’s best colleges
American college kids fill their minds with kegs worth of knowledge at some of the world’s best universities. Six out of the top 10 universities in the 2012 Quacquarelli Symonds World Rankings’ were American.
$ is the king
The U.S. dollar is the world’s reserve currency. From the U.S. Trust report: “The greenback accounted for roughly 62% of global central bank reserves as of the fourth quarter of 2012, according to the IMF, a share down slightly from 2008 but relatively constant over the post-crisis years.” It crushed the beleaguered Euro.
Among the most competitive global economies
In the latest competitiveness survey from the World Economic Forum, the U.S. slipped to seventh place, down two spots, according to the report. Still, U.S. Trust guesses America will head north on the list in the future.
Cradle of the top global brands
In 2008, eight out of 10 of the world’s top brands were American (Coca Cola, Apple, IBM, Google, Microsoft, General Electric, Mc Donald’s and Intel).
In the middle of an energy Renaissance
Much to the chagrin of some environmentalists, U.S. domestic oil production is in revival mode. It exceeded imports for the first time in 16 years, according to the report. Thanks to “fracking” that unlocked shale in North Dakota, Oklahoma, and Texas, the U.S. has seen a major surge in production, the report notes.