Economic trends
The United States is the largest and most powerful economy in the world. Nevertheless, it was the first to suffer from the consequences of the financial crisis in 2009. The country experienced the worst recession since the crisis of the 1930s, the economy shrinking by 2.6% in 2009. Thanks to the government’s large-scale budget and monetary stimulus plan, which among others stimulated household consumption, the economy recovered in 2010, with a growth of 3%. In 2011, the growed again slowed down as a result of the downturn in private investment, a drop in exports and the growth in public spending. A weak growth is expected for 2012 due to the risk of contagion coming from the eurozone crisis.
The U.S. economy recovered, albeit weakly, from the 2009 crisis and the government plans a gradual withdrawal of tax incentives. Priority is given to fiscal consolidation and to debt management. The government had already set a goal of reducing the federal deficit by more than 10% in 2010, to 3% in 2015, counting on doubling the exports in the next five years. In a pre-election context, the economic climate is affected by the contrast between the Democrats, advocating a tax increase for the more affluent classes, and the Republicans, relying on spending cuts. in April, the blockage led the rating agency Standard & Poor's to lower its long-term perspective for the U.S. The continued fall in property prices and the unfavorable international economic situation has provoked fears of a new recession. Since the financial crisis, priority is given to regulating and supervising the financial markets. Finally, population aging poses additional challenges in terms of healthcare spending.
Following the crisis, the unemployment benefits shows a strong upward trend, reaching 9.9% in October 2009. Although it has since decreased, the level of unemployment remains high about its pre-crisis level. In addition, since the 1980s we see a growth in social inequality.
Main branches of industry
The American agricultural sector is without a doub the biggest in the world. It is characterized by high productivity and by the use of modern technologies. The United States is one of the major producers of corn, soya, beef and cotton. California alone produces more than 12% of the country's total agricultural production. Nevertheless, agriculture only accounts for 1% of the American GNP.
The United States is a highly industrialized country. The industrial sector contributes almost a quarter of the GDP and includes a large variety of activities. The most significant are the manufacturing of electric and electronic machinery, chemical products, industrial machinery, the food industry and automobile sectors. It is also the world leader in aerospace and pharmaceutical industries. The abandunce of natural resouces has turned the United States into a leader in the production of several minerals and allows it to maintain a diversified production. It is thus the biggest world producer of liquid natural gas, aluminum, electricity and nuclear energy. It is the third oil producer in the world.
The American economy is essentially based on services. The tertiary sector accounts for more than three-fourths of the GDP and of the workforce.
International trade
The country has generally reduced trade barriers and integrated into the world economic system. The United States is convinced that trade promotes economic growth, social stability, and democracy in individual countries, and also helps to promotes better international relations. Nevertheless, trade represents less than a third of the country’s GDP. As part of the 2010 economic stimulus plan, the administration has adopted a policy of promoting exports, with the aim of doubling exports in the next five years.
The U.S. trade balance is structurally strongly negative. As an effect of the economic crisis, the decrease in imports reduced the deficit, nevertheless, due to the economic recovery it has again deepened in 2011 and this tendency should continue in 2012.
The main trade partners of the United States are the countries of NAFTA (North American Free Trade Agreement composed of the United States, Mexico and Canada), China and the European Union.
© Export Entreprises SA, all rights reserved.
Last updates: May 2012
