Economy of the United States
The United States is a highly developed/advanced mixed economy.[36][37][38] It is the world's largest economy by nominal GDP; it is also the second largest by purchasing power parity (PPP), behind China.[39] It has the world's seventh highest per capita GDP (nominal) and the eighth highest per capita GDP (PPP) as of 2022.[40] The U.S. accounted for 26% of the global economy in 2023 in nominal terms, and about 15.5% in PPP terms.[9] [41] 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.[42] Several countries use it as their official currency and in others it is the de facto currency.[43] Since the end of World War II, the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology.[6]
"Economy of America" redirects here. For other uses, see Economy of America (disambiguation).Currency
October 1 – September 30
- Developed/Advanced[4]
- High-income economy[5]
- Diversified North American economy[6]
340,332,281 (August 30, 2023)[7]
- Agriculture: 0.9%
- Industry: 18.9%
- Services: 80.2%
- (2017 est.)[6]
- Household consumption: 68.4%
- Government consumption: 17.3%
- Investment in fixed capital: 17.2%
- Investment in inventories: 0.1%
- Exports of goods and services: 12.1%
- Imports of goods and services: −15%
- (2017 est.)[6]
3% (2023)[10]
0.921 very high (2021)[14] (21st)- 0.819 very high IHDI (25th) (2021)[15]
- Agriculture: 1.0%
- Industry: 19%
- Services: 80%
- (FY 2018)[17]
$5,407 / €5,052 monthly[18] (2022)
$3.053 trillion (2023)[21]
- Agricultural products 10.7%
- Fuels and mining products 9.4%
- Manufacturers 74.8%
- Others 5.1%[22]
$3.827 trillion (2023)[21]
- Agricultural products 10.5%
- Fuels and mining products 10.7%
- Manufacturers 78.4%
- Others 4.2%[24]
$27 trillion (2023)[27]
$30.568 trillion- 122.1% of GDP (2022)[26]
–5.5% of GDP (2022)[28]
$8.371 trillion[26]
33.4% of GDP (2022)
$9.379 trillion[26]
37.4% of GDP (2022)
See Federal budget
$217 billion (2023)[35]
The American economy is fueled by high productivity, well developed transportation infrastructure, and extensive natural resources.[44] Americans have the highest average household and employee income among OECD member states.[45] In 2021, they had the highest median household income.[46] The U.S. has one of the world's highest income inequalities among the developed countries.[47][48][49] The largest U.S. trading partners are Canada, Mexico, China, Japan, Germany, South Korea, the United Kingdom, Taiwan, India, and Vietnam.[50] The U.S. is the world's largest importer and second largest exporter.[51] 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.[52] Among OECD members, the United States has a highly efficient and strong social security system, which comprises roughly 30% of GDP.[53][54][55]
By 1890, the United States had overtaken the British Empire as the world's most productive economy.[56] It is the world's largest producer of petroleum and natural gas.[57] In 2016, it was the world's largest trading country[58] and second largest manufacturer, with American manufacturing making up a fifth of the global total.[59] 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.[60] Of the world's 500 largest companies, 121 are headquartered in the U.S.[61] The U.S. has the world's highest number of billionaires, with total wealth of $3.0 trillion.[62][63] U.S. commercial banks had $22.9 trillion in assets in December 2022.[64] U.S. global assets under management had more than $30 trillion in assets.[65][66] During the Great Recession of 2008, the U.S. economy suffered a significant decline.[67][68] 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.[69][70][71][72]
The New York Stock Exchange and Nasdaq are the world's largest stock exchanges by market capitalization and trade volume.[73][74] In 2014, the U.S. economy was ranked first in international ranking on venture capital[75] and global research and development funding.[76] Consumer spending comprised 68% of the U.S. economy in 2022,[77] while its labor share of income was 44% in 2021.[78] The U.S. has the world's largest consumer market.[79] 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.[80] 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.[81]
Mergers and acquisitions[edit]
Since 1985 there have been three major waves of M&A in the U.S. (see graph "Mergers and Acquisitions in the U.S. since 1985"). 2017 has been the most active year in terms of number of deals (12,914), whereas 2015 cumulated to the biggest overall value of deals ($24 billion).
The biggest merger deal in U.S. history was the acquisition of Time Warner by America Online Inc. in 2000, where the bid was over $164 billion. Since 2000 acquisitions of U.S. companies by Chinese investors increased by 368%. The other way round—U.S. companies acquiring Chinese Companies—showed a decrease of 25%, with a short upwards trend until 2007.[437]