Even though Americans have been dissatisfied with the economy lately, data shows that the U.S. has the largest and strongest economy in the world as we enter the New Year.
Just this week, Forbes India listed the U.S. as the country with the largest economy in the world, based on Gross Domestic Product data.
“The United States upholds its status as the major global economy and richest country, steadfastly preserving its pinnacle position from 1960 to 2023,” said the outlet. “Its economy boasts remarkable diversity, propelled by important sectors, including services, manufacturing, finance, and technology. The United States enjoys a substantial consumer market, fosters innovation and entrepreneurial spirit, possesses resilient infrastructure, and experiences advantageous business conditions.”
Investopedia ranked the U.S. economy as the world’s top last month based on GDP data. It said that the economy’s service sector – including finance, real estate, insurance, professional and business services, and healthcare – was the main driver of GDP.
Over the summer, the Center for American Progress reported that the U.S. economy was among the strongest in the G7 forum. That intergovernmental group also includes Canada, France, Germany, Italy, Japan and the U.K.
“The U.S. economy remains better positioned than many of its counterparts in the Group of Seven (G7) across the following seven indicators: inflation, energy prices, gross domestic product (GDP), the unemployment rate, the long-term unemployment rate, the 2023 International Monetary Fund (IMF) GDP forecast, and the 2023 IMF unemployment rate forecast,” the CAP said.
Business Insider also reported on the strong position of the U.S. economy this summer, and President Joe Biden has touted the strength of the U.S. economy as the world moves past the COVID-19 pandemic.
“The unemployment rate in America has remained below 4% for 22 months in a row,” he said in a Dec. 27 X post.
Biden has championed his plan to get rid of “trickle down” economics and replace it with “Bidenomics” programs. These are “rooted in the recognition that the best way to grow the economy is from the middle out and the bottom up,” according to the White House.
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By October, the U.S. Treasury Department said that the nation has seen “particularly strong GDP recovery,” post pandemic and that it was “especially resilient,” when compared to global labor markets. It also said that U.S. inflation cooled sooner than in other advanced nations.
However, Americans still felt the impact of elevated inflation and the Federal Reserve Bank’s attempts to bring it down with interest rate hikes that make it more expensive to borrow money. Gallup polling from December showed that 45% of people polled considered the American economy “poor”, slightly down from 50% in November. In fact, at least 42% of people polled by Gallup have considered the economy “poor” since February 2022.
Nearly 70% of those polled in December said they think the economy is getting worse, down from a high of 85% in June. Dissatisfaction with the economy has been linked to falling approval ratings for Biden as the 2024 presidential election draws nearer.
Still, though many were bracing for the economy to buckle, or for a re-do of the 2008 recession, Audacy has also reported on how the economy “failed to fail” in 2023. According to a Tuesday article from MSNBC, there are signs that American views on the economy’s health might be turning around.
Looking to the future, Bloomberg columnists said this week that the U.S. may have really achieved a “soft” economic landing from the pandemic, but that the 2024 economic landscape will likely be unpredictable. USA Today reported that inflation is expected to come down and that rate hikes are expected to be over – some cuts might even be coming.
Per the outlet, Mark Zandi, chief economist of Moody’s Analytics said 2023 was a “very good year,” and that “2024 will just be a good year.”