The US economy and its strengths
The US economy is the world leader in terms of GDP. A key success factor has been a long-term focus on productivity growth. Since 2019, despite the pandemic and the economic crisis, US GDP has grown by 11.4%. In 2024, the growth rate will be 2.8%, which is high compared to other developed countries.
It is worth noting that the US recovered more quickly after the pandemic and the geopolitical conflict in Europe. One reason for this is the country’s established energy supply. Maintaining productivity growth has also been an important factor, as evidenced by the economic recovery after the 2008 crisis. At that time, the country’s productivity grew by 30%, three times the growth rate of the EU and the UK.
Experts stress the importance of productivity in assessing economic potential. It affects several key processes:
1. Thanks to increased productivity, citizens can expect wage growth.
2. Companies can regularly increase their profits.
3. Tax revenues increase.
4. Living conditions in the country improve.
In 2024, productivity per hour worked in the US will be almost 9% higher than in 2019. At the same time, it will fall in Canada, the EU, and the UK.
The role of IT in economic growth
According to economist Mario Draghi, the main advantage of the US is its strong technology sector. It attracts huge investments that strengthen the local market. Preqin cites the following data to illustrate the US’s success in this area:
– the country’s share of G7 venture capital funding over the past 10 years is 83%;
– the US attracted 14.6% of global foreign direct investment;
– investment in the first 10 months of 2024;
– the German economy received the least foreign investment.
Investors are particularly interested in the IT sector. The US is the leader in this sector, and the largest technology companies are based there.
Another peculiarity is Americans’ attitude. They are strongly focused on performance and constantly look for productivity gains. In addition, local companies actively innovate to increase profits. American investors and the government are willing to take risks to achieve the desired results.
The focus on technology is encouraging the emergence of more venture capital funds, which in turn stimulate the creation of new start-ups. Thus, the US economy works like a flywheel.
The country’s development is stimulated by constant rivalry with other advanced states, especially China, which relies on technology. The US government’s support for the IT sector plays an important role in this process. High property prices and unemployment exacerbate the situation.
