The US economy is entirely flourished mixed economy. If we consider the Grass Domestic Product of USA, it is the largest economy in the world. Moreover if we conclude its GDP over purchasing power, (Concluded on the base of market or official exchange rate) it is the second largest economy of the world. In the world making, its per capita GDP is fall on 8th rank. In the technological advancements, the US economy is the most powerful economy In the world.
In the international market, the US currency (i.e. dollar) is used as a transaction mode globally. Not only has this, but the countries in the world saves/reserves their assets in the form of US dollar, which is also a big reason of its economy being on the top in the World. The USA has also introduced the concept of Petrodollar which is being used in most of the countries as the official currency and other are use it as de-facto currency. Petrodollar system basically refers towards the spending / investments of a country in the form of petroleum. The petroleum exporting nations like OPEC members, Russia and Norway etc. exports crud one and get the money in the form of petrodollar which they can use in the form of US dollar or can withdraw in any currency of the world.
On the other hand, De-Facto currency is a unit of illegal money, illegal means it cannot be treated in a country as legal but in the international market, it can be used easily, European Unions, Euro, US dollar are the popular de-facto currencies. Some other de-facto currencies are known as Hong Kong dollar, Russian Rubble, Canadian Dollar Botswana Pula and South African Rand. US have made free trade agreements with various countries like South Korea, Australia, Israel etc. This agreement is known as NAFTA which is the abbreviation of North American Free Trade Agreement. The US is also recognized as the world’s largest importer and the second largest exporter in the world. US have an effective trade with many countries like India France, Taiwan, China, Germany, Canada, UK, Mexico and Japan etc.
The fiscal year in the United States of America start from 1st of Oct. and it ends on 30th of September. Its currency is US dollar having trade organizations like WTO and OECD (World Trade Organization and Organization of Economic Cooperation and Development). US GDP is $21,345 trillion dollars with a growth rate of 2%. Its per capita GDP is $64,767 having inflation rate of 1.7%. The contributions of various sectors in its GDP are given below:
1. Agriculture -> 0.9%
2. Service -> 80.2%
3. Industry -> 18.9%
The rate of the unemployment is only 3.7% in the USA. In this country, the average gross salary of a person is $63,093.
Its imports are of 2.54 trillion dollars per anum and the exports are $1.66 trillion. The values of its natural resources ranked 7th in the world. It is the largest trading country and the largest producer of oil and grass in the world. The highest number of billionaires in the world are the residents of US having the ownership of 3.013 trillion dollar. It is also note-able that 121 headquarters of the top level companies exist here. Its stock exchange named the New York Stock exchange are the World’s largest stock exchange in content of its trade volume and capital.
In the concluding paragraph, we must say that if a country wants to be a strong and prosperous country in the world, it may have to strengthen its economy first. We can analysis that the US economy Is the top level economy on the world and seems as unchangeable. This is the reason of making USA the greatest power in the world.
A country cannot survive without a strong economy
Farhan Rasheed
The economy is the start and the end of everything.
David Cameron.
Comments are closed.