The most influential and richest country in the world will for a long time determine the situation in global markets, despite the fact that China is gradually crowding it. In the structure of the US economy, about 80% falls on the services sector, this is the most advanced post-industrial state. In many industries, American companies are at the forefront of technological advances and are leading the global market.
about the country
The United States of America - a state located in North America, has an area of 9.5 million km, ranking 4th in this indicator. 327 million people live in the country (3rd place in the world), of which white - 72.4%, black - 12.6%, Asians - 4.8%, people who have ancestors belonging to 2 or more races, - 6.2%, representatives of indigenous peoples - 0.2%. The most common language, which is actually considered official, is English, about 80% of the population consider it native. The second most common is Spanish (about 13%). GDP per capita in 2017 amounted to $ 61053.67.
Political system - constitutional federal republic. The supreme body are: the executive branch - the president; Legislature - bicameral US Congress; Judiciary - Supreme Court. State powers are distributed between the federal government and the states. An advanced post-industrial power in the world, since the leading sphere in the structure of the US economy is services. In 2017, the country's GDP grew by 2.2%.
general information
The largest world economy, in almost all macroeconomic indicators, for over a hundred years continues to lead only in nominal GDP - $ 19, 284.99 billion. Nevertheless, the US economy produces nearly a quarter of the planet’s GDP. In terms of GDP, calculated at purchasing power parity, the United States missed China ahead in 2014. The US economy in the world in this indicator occupies 15% of the world. According to forecasts, China is expected to overtake the United States this year in terms of the domestic market.
However, for a long time, the main answer to the question what kind of economy the USA has is: the most advanced. The country has the highest technological potential. Since the end of World War II, many American companies have been leaders in the global market, especially in the field of digital technology, pharmaceuticals, medical, aerospace and military equipment. Which is a significant advantage of the US economy. The country has the most diversified national economy.
At the same time, the United States has the world's largest public foreign debt, which in 2016 amounted to $ 17.91 trillion. Other long-term problems of the country include:
- salary stagnation for low-income families;
- low investment in deteriorating infrastructure;
- rapidly increasing medical and pension expenses of an aging population;
- a significant current account and a significant budget deficit.
The formation of the American economy
The origins of the country's development lie in the search for a better share of European immigrants since the XVI century. The history of the US economy began with a small colonial economy, which gradually transformed into an independent farming and later into an industrial economy. At first, Americans lived mostly on small farms and led a relatively independent economic lifestyle. As the territories conquered from the indigenous population grew, trade and artisanal auxiliary production developed.
By the XVIII century, the New World turned into a fairly developed rich colony with an economy based on shipbuilding and shipping, agricultural production (cotton, rice, tobacco) using slave labor. After gaining independence, the government pursued a policy of supporting industry through the introduction of protectionist import tariffs and open subsidies. Free trade was carried out between the individual states, and specialization was gradually determined with the division into the industrial North and the agricultural South.
At the beginning of the 19th century, an industrial revolution took place in the country, which gave a strong impetus to the growth of the US economy, which was facilitated by the emergence of a shipping company that accelerated cargo transportation. But the construction of railways, which opened up significant inland areas for development, had a special influence on the country's development.
From civil war to modern times
The victory of the industrial north in the Civil War (1861-1865) had a decisive influence on the characteristics of the US economy. The slave system was abolished, as a result of which the significant labor resources needed for developing industry were freed. The economy of the North, which had grown on military orders, continued to grow rapidly, and the southern plantations became less profitable. Subsequently, this period, when many discoveries and inventions led to qualitative changes in the production sphere, was called the second industrial revolution. Then, telephone, electricity, freezing railway cars, then a car and an airplane entered everyday life. The first American oil was produced in western Pennsylvania.
After World War I, the United States came first in terms of economic growth and produced nearly half of the world's industrial output. However, starting in 1929, the Great Depression began in the country, an economic crisis that ended only with the outbreak of World War II, when military orders began to stimulate the development of the US economy.
In the second half of the twentieth century, the American economy, despite repeated short periods of recession, developed successfully, becoming the largest in the world. Economic policy as a whole was aimed at ensuring high employment, maintaining low interest rates and inflation. The sectoral structure of the US economy has changed dramatically, high-tech enterprises have begun to take an increasing share, the service sector has increased significantly, especially in the financial sector.
In 2007-2009, the country experienced a mortgage crisis, which became the longest and deepest crisis since the Great Depression. The economy fell 4.7% over this period, and it took six years to rebuild.
US GDP
The developed post-industrial American state focuses primarily on expanding the service sector. The country's material production (mining and manufacturing, agriculture, forestry and fishing, construction) occupies only 20% of the US economy, including 19% in high-tech industry and 1% in developed agriculture. Despite a small occupied share, American agriculture occupies a leading position in the world in many types of products.
The main part in the structure of the US economy is formed in the service sector, primarily finance, education, public services, healthcare, science, trade, various types of transport and communications. In the following decades, professional and personal services will become increasingly important, respectively, and their share in the industry will increase rapidly.
Trends in the US Economy
For a long time, the United States has been among the world leaders in industrial development. However, in the 80s, the country was one of the first to switch to a post-industrial society, and the industrial sector began to decline significantly. At the same time, industry remains a key industry, largely ensuring a high technological level of other sectors. It is in this sector that the latest technological innovations are primarily accumulated.
The sectoral structure of the US economy began to change due to two main reasons: due to the transfer of American enterprises to less developed countries and increased competition among regions with cheaper labor. Under President Donald Trump, the US government seeks to again increase the number of manufacturing companies with protective duties, forcing American and foreign companies to place / transfer production in the country. Also, in the American economy there was a decrease in the share of agriculture and raw materials industries (possibly with the exception of oil and gas).
Place in the world by share of service sector
The share of the services sector in the economy is one of the indicators characterizing the level of development of the economy. Although the leaders in this indicator are small states with virtually no industry - Monaco (95.1%), Luxembourg (86%) and Djibouti (81.9%).
In terms of the share of services in the economic structure, the United States overtook the Netherlands and Israel, which had certain competitive advantages and specialized in services. Among developed countries, the United States is in first place in terms of the tertiary sector and, moreover, has the most optimal GDP structure. Especially important is the country's leading role in the financial sector and high-tech industries related to the development and implementation of innovations. For example, the United States is far ahead of other financial centers in terms of the volume of financial instruments sold on the New York Stock Exchange and NASDAQ (specializing in shares of high-tech companies). The country's investment climate makes it possible to well perceive the new achievements of science, the country is a world leader in the export of licenses for inventions, the latest developments and discoveries.
Industry
Industrial production in the United States in 2017 grew by 2.3% (122nd place in the world). The country's share in the world economy is steadily declining, but it still remains among the leaders in the production and export of industrial products. However, the structure of the US economy by industry has undergone significant changes in recent decades. The country has a highly diversified industry, being the world leader in high technology and the second largest industrial producer.
The peculiarity of the US economy in the industrial sphere was that most of the produced GDP is provided not by basic industries (engineering and metallurgy), but by high-tech production, consumer goods, textile and food industries. The country's military-industrial complex is the largest arms producer and exporter in the world, occupying 34% of the global market. The country is a leader in the production of many types of products, including steel, automobiles, aerospace, telecommunications, chemicals, electronics, the food industry, consumer goods, and mining.
Energy and oil and gas industries
Last year, for the first time in twenty years, the country took first place in the world in oil production, overtaking Saudi Arabia and Russia, which was largely due to the shale revolution. The main hydrocarbon producing regions are Texas, Alaska, California, and the Gulf of Mexico continental shelf. Most of the rigs are located on the coast. Explored oil reserves are estimated at more than 19.1 billion barrels.
Up to 40% of the total energy demand for production is provided by hydrocarbons. The country uses about 20 million barrels of oil per day, of which 66% goes to transport, 25% goes to industry, 6% goes to heating, and about 3% is burned to produce electricity. Other sources of energy are natural gas, coal, and nuclear energy. Over the past decades, the number of coal-fired power plants has significantly decreased, by 2016 - by 400 units. Due to lower coal demand, three of the four largest coal mining companies went bankrupt in 2015. Every year, the share generated by renewable energy sources is increasing, now they account for 2.6% of total consumption. In total, the country's energy sector produces 4.4 million gigawatt-hours of electricity (second place after China).
