These Three Metrics Explains Just How Big the US Economy Is in 2023
The United States (US) economy is the largest in the world and that has been the case for at least the last 100 years. Some reports postulate that the country had begun leading the world industrially by the start of the 20th century. The US has manifested the key factors of production — capital, land, and labor — to an unparalleled degree throughout its history, led by celebrated persons across science, engineering, business, economics, and more.
Nonetheless, the economy has suffered its fair share of setbacks. From the Great Depression in the 1930s to the 2008 financial crash, such incidents have threatened to capsize the country’s economic ship beyond repair. But through a combination of sound policies, financial reserves, and strong international relationships, the US always has always found a way to rebuild. These three parameters capture just how large the economy is in 2023.
Gross Domestic Product
As the premier determiner of a country’s economic wellness, the gross domestic product (GDP) — referring to the total value of goods and services traded in a country — is usually the first point of information about the size and strength of an economy. But what stands out the most about the GDP of the US, even more than its actual value, is its difference from those of other countries.
The latest available studies report that the GDP of the US stood at $23.315 trillion in 2021, making it responsible for up to 10.4% of the global economy. Second-place China recorded a GDP of $17.734 trillion. The aggregated GDPs of Japan, Germany, India, the United Kingdom, France, Italy, and Canada (the countries placing third to ninth), they would still create less value than the US.
Even with the coronavirus pandemic, mass layoffs, and inflation, the US still maintains a high level of industrial activity. A look at various sections of the economic calendar reveals when we can expect to see the data for each of a variety of industries and sectors. The option to filter by “High importance” releases makes it even easier for traders and anyone with an interest in the US’s economic performance to uncover that data at the click of a button.
To summarize, though, the US is set to maintain such high performance far into the future. In addition, the country imports the second-highest quantity and exports the third-highest amount of goods and services globally, with $325.8 billion in imports and $257.5 billion in exports. Interestingly, only 10% of its GDP is attributable to exports, implying that the US works to keep its competitive advantage in manufacturing high-value products and contributing across the value chain.
Speaking of companies, it’s unsurprising that the US economy supports massive company growth. Apple is currently the only company in the world valued at more than $2 trillion. Nine of the ten most valuable companies globally are based in the US. The top three alone — Apple, Microsoft, and Alphabet — combine for more than $5 trillion in market capitalization. Through taxes, job creation, and technological development, these companies contribute tremendously to the US economy, making it a prime destination for foreign investment.
Going forward, it would be interesting to see how the US maintains this economic power dynamic. China currently stands as the top threat, as it is steadily increasing economic output, strengthening international alliances, investing in home-grown corporations, and striving to boost the usage and value of the Chinese Yuan. Nonetheless, it is not out of place to expect that the US economy remains on top for at least the next decade.