The US economy is the largest on a global scale, and US GDP in 2016 exceeded $ 18.5 trillion. It must be said that a significant part of the country's economic opportunities can be attributed to innovation, high technology and production, which, as a rule, are grouped in urban areas. 80% of Americans live in cities - and only 10 of the largest megacities produce 34% of the country's total GDP.
New York Place in the US Economy
New York State's GDP is the third largest in the United States economy, lagging only in Texas and California. The state economy is so large that it could be the fifteenth largest economy in the world if it were a separate country.
At the same time, the city confidently holds the first position among US megacities in terms of GDP, which in 2016 amounted to 1.48 trillion dollars.
It is impressive that New York's GDP is higher than in most countries of the world. These include Russia, Australia, Mexico and Spain.
New York's GDP structure
But in order. In New York's GDP structure, the main sectors are:
1. Financial services.
The financial services sector is synonymous with Wall Street, which is located in Manhattan. The New York Stock Exchange (NYSE), founded in 1817, is the most influential stock exchange in the world. This sector is not leading in New York in terms of the total number of employees, but is obviously the most influential. It is also one of the most potentially profitable. Financial professionals earn on average four times the average resident of the city.
2. Health.
About 20 million people live in New York, which means that the demand for medical services is very high. The Labor Department reports that there are more employees in the Healthcare and Social Assistance industry than in any other. Moreover, the Department of Labor expects high employment growth in this sector.
However, unlike financial services, the average salary for healthcare providers in New York is below the national average. And although many large New York medical institutions have made significant gains since the adoption of the Accessibility Act in 2010, this area does not show the same impact on the state economy as Wall Street does. The growth of the healthcare industry in the metropolis is fueled, inter alia, by programs such as PILOT Health Tech NYC, Community Health Clinic Expansion Program, and Bio & Health Tech Entrepreneurship Lab NYC.
3. Professional and technical services.
As of 2015, an estimated 647, 800 New Yorkers were employed in professional and technical services. This wide area includes a large number of different professional groups, such as lawyers, accountants, mechanics, marketers and others who have similar characteristics.
These are professionals who make everyday life possible for individuals and enterprises and who mainly carry out supporting functions in other, more visible sectors. For this reason, this group of professions is very sensitive to economic cycles. In contrast, for example, from financial services.
According to the studies of the Department of Labor, the group of professional, scientific and technical services is the only significant industry that displays all of the following positive trends: the growth rate is above average; wage growth rates are higher than average; and average weekly wages are above the state average.
4. Retail.
Retail trade also includes a large number of sub-industries, such as:
- Food trade.
- Retail sale of clothing.
- Retail sale of electronics and accessories.
- Auto sales.
- Other
As in finance and manufacturing, New York retailers and their marketing consultants are major trendsetters in the national industry.
According to the New York State Retail Board, more than 800, 000 employees work in more than 75, 000 New York retail companies. Many of these jobs are distributed throughout much of New York, especially in Manhattan and Jefferson County.
This is another cyclical area, which, as a rule, suffers greatly during economic downturns, although some of its sectors, such as food trade, are not subject to large fluctuations.
5. Production.
New York exports a wide variety of manufactured goods to other countries. Thus, the manufacturing sector is a leader in the production of rolling stock for railways, clothing, since the city is the capital of fashion in the United States, elevators, glass and many other products.
New York GDP growth in 2017
What about last year? New York's GDP continued to grow in 2017. A new quarterly report showed that in the second quarter of this year, economic growth was 3.3% - more than twice as much as in the same quarter last year. A record number of jobs, growing investments in venture capital investments and leading economic areas indicating growth, were noted.
The growth rates in the second quarter of 2017 were more than two times higher than in the first quarter of 2016.
This quarter, the city’s economy exceeded the growth of the national economy, an increase of 3.3%, compared with 2.6% across the country.
The growth in the number of jobs continues.
The number of employed residents of the city reached a record level of 4.1 million in the second quarter of 2017 - an increase of 87, 200 people compared to the first quarter, and the largest quarterly increase since 1985.
The average hourly earnings of all workers employed in the private sector in New York grew by 4.8% compared to the same period last year - up to 35.10 US dollars.
Growth dynamics
For the 5 years ending in 2016, the economy of the metropolis grew in real terms by 6.77%, with an aggregate annual growth rate of 1.32% per year. New York's real GDP is $ 1.43 trillion. In 2016, it is at the highest level registered to date.
Russia and New York
Consider the GDP of Russia and New York. Russia's economy is just a small fraction of the United States' GDP. Russia's GDP in 2016 amounted to about 1.3 trillion dollars. This is approximately 7% of United States GDP ($ 18.5 trillion). Also, Russia's GDP is less than that of New York, the difference is more than $ 150 billion.
Russian GDP structure
Russia is a major producer and exporter of oil and natural gas, and its economy is largely dependent on the export of energy sources. Russia's economic growth is driven by energy exports. Oil and natural gas revenues accounted for 50% of the federal budget revenues of Russia and 68% of total exports in 2013.
