Economy of USA 2017-2023

Professor Dr. Qais Aslam ([email protected])

In November 2024 there would be presidential elections in USA. What is unique for this election that both the candidates Mr. Joe Biden of Democrat party and Mr. Donnald Trump of the Republican party have been president for one term. Also, what is important to note that, President Joe Biden, the sitting president is being impeached by the American parliament and President Donald Trump is being indited by this administration. If that happens, then USA will get Ms. Kamila Harris as the first female president even before the elections.??

USA is the largest economy in the world. It should be interesting to understand, whether all is right with this economy because many an economies around the globe depend upon the robustness of USA economy.?

When President Barak Obama (Democrat) left the white house and President Donald Trump (Republican) took over as president in January 2017, the GDP of USA was US $ 19.5 trillion. When President Trump left the office in January 2021 and President Joe Biden (Democrat) took office, the GDP of USA was US $ 32.2 trillion. Or US $ 12.8 trillion more than in 2017. The GDP of USA in 2022 was US $ 25.5 trillion (US $ 6.8 trillion less than in 2021) and is expected to rise to US$ 26.0 trillion by 2024.??

Per capita income of USA in 2017 was US $ 59.5 thousand, in 2021 was – US $ 70.2 thousand and in 2023 will reach US $ 64.0 thousand.? The growth rate of American GDP in 2017 was 2.2% annually. The growth rate of American GDP in 2021 was 5.9% annually and the growth rate of American GDP in 2023 is 2.1% annually.?

Inflation in USA in 2017 was 2.13%. In 2021 was 4.7% and in 2022 was 8.0%. Unemployment rates in USA in 2017 were 4.1%. Unemployment rates in USA in 2021 were 5.35% and unemployment rates in USA in? August 2023 stood at 3.9%.?

While policy interest rates in USA in January 2017 was 0.65 percentage points. In February 2021 policy interest rates of USA were 0.08% and in June 2023 are – 5.08%. (Source: https://www.statista.com/statistics/187616/effective-rate-of-us-federal-funds-monthly/?gclid=CjwKCAjwseSoBhBXEiwA9iZtxsBygvzIB8XHKHc4zh1BlUBh-eIj0-k6OsQ8DtfWovArlqHvpSLmbBoCgngQAvD_BwE)??

National Debt of USA in 2017 was US $ 20.2 trillion, National debt of USA in 2021 rose to US $ 28.4 trillion and National debt of USA in 2022 was US $ 31.0 trillion. (Source: https://www.statista.com/statistics/187867/public-debt-of-the-united-states-since-1990/) In 2023 American debt in 2023 is envisaged at US $ 32.0 trillion and the yearly interest on this debt is more than US $ 1.0 trillion.?

Irrespective of these statistics, it should be remembered that USA is home to the largest MNC’s in the world, one of the leading universities catering for research in almost every field and most of the emigrants (legal and illegal) want to go and settle in USA – the land of ‘free’ opportunities and almost 83% of its businesses are small businesses.?

Outflow of USA FDI (Direct Foreign Investment in 2017 was total of almost US $ 4.0 trillion. In 2021 this FDI outflow was almost US $ 5.0 trillion. (Source: https://www.statista.com/statistics/188870/foreign-direct-investment-in-the-united-states-since-1990/) In 2022 USA FDI outflow is US $ 8.0 trillion. “Top recipients of FDI inflows worldwide in the first quarter of 2023 were the United States (US $ 109 billion), Brazil (US $ 21 billion), and China (US $ 21 billion), Top sources of FDI outflows worldwide were the United States (US $ 110 billion), Germany (US $ 57 billion) and China (US $ 50 billion)”. Source: https://www.oecd.org/investment/statistics.htm?

USA exports in 2017 were US $ 2.3 trillion. In 2021 were US $ 2.5 trillion. In 2023 Exports from USA declined to US $ 0.25 trillion. Major export USA in? May 2023 are “Aircraft Parts (US $ $9.21 billion), Refined Petroleum (US $ 9.13 billion), Crude Petroleum (US $ 8.72 billion), Cars (US $ 6.23 billion), and Commodities not elsewhere specified (US $ 5.6 billion)”. USA imports in 2017 was US $ 2.9 trillion in 2017, and in 2021 USA imports were US $ 3.4 trillion and in 2023 are US $??

In May 2023, the decrease in United States's year-by-year exports was explained primarily by an decrease in exports to China (US $-1.64B or -13.3%), Mexico (US $-1.64B or -5.66%), and South Korea (US $-1.02B or -16.3%), and product exports decrease in Petroleum Gas (US $-3.83B or -42.7%), Refined Petroleum (US $-3.43B or -27.3%), and Crude Petroleum (US $-1.69B or -16.2%). In May 2023, the decrease in United States's year-by-year imports was explained primarily by an decrease in imports from China (US $-7.97B or -18.2%), Canada (US $-3.62B or -8.95%), and Vietnam (US $-2.65B or -22.4%), and product imports decrease in Crude Petroleum (US $-5.13B or -27.3%), Refined Petroleum (US $-3.1B or -35%), and Telephones (US $-1.2B or -12.3%). USA’s trade deficit in 2017 was US$ minus US $ 568.4 billion. In 2021 trade deficit of USA was minus US $ 845.0 billion and in 2023 trade deficit of USA is minus US $ 65.0 billion. In 2023, “Exports were up 1.6% to a four-month high of $251.7 billion, led by passenger cars, trucks, buses and special purpose vehicles, nonmonetary gold, crude oil, pharmaceutical preparations, travel, and transport while shipments fell for gem diamonds. Meanwhile, imports increased 1.7% to $316.7 billion, boosted by cell phones and other household goods, pharmaceutical preparations, semiconductors, computers, crude oil and travel. On the other hand, purchases declined for finished metal shapes, iron and steel mill products, nonmonetary gold, and transport. The deficit with China increased $1.2 billion to $24.0 billion; the surplus with Hong Kong decreased $1.0 billion to $1.5 billion; and the balance with the UK shifted to a surplus of $0.5 billion from a deficit of $0.8 billion in June.2023”. Source:? https://tradingeconomics.com/united-states/balance-of-trade??

It can be safely said, that deterioration of USA’s economic and trade relations with China and other BRICS nations is having a toll on its economic performance. War in Ukraine (with all its human and infrastructural costs for the warring nations) and sanctions on Russia are also not helping the American economy. This conflict between NATO and Russia is also not helping the global economy. Not only this cruel war should end, but also the world led by USA’s statesmen should bring back the global economic order, that are sustainable not only for their economies, but also for the environment and the natural resources in America and its adversaries.?