United States

Capital: Washington

Local time:
It is %T:%M %A in New York, Washington DC, Philadelphia
It is %T:%M %A in Chicago, Houston, San Antonio, Dallas
It is %T:%M %A in Los Angeles, San Diego

Exchange rate on :

GDP growth rate: 2.398% in 2012

FDI inward stock: 2 093 049 million USD in 2007

Country risk: See the country risk analysis from United States provided by Ducroire.

Economic trends

The United States is the largest and most powerful economy in the world. Nevertheless, it was the first to suffer from the consequences of the financial crisis. GDP growth was at 1.1% in 2008, the lowest rate since the September 11^th 2001 attacks, and the country went into recession in 2009. The unemployment rate showed a strong upward trend, going over the 9% threshold at the beginning of 2010, thus reaching the highest figures in 25 years. However, U.S. economy has started to recover in the last quarter of 2009 with a growth rate of GDP of 0.7%. It has even strengthened in the first quarter of 2010 with a growth rate of 3.2%, thanks to private consumption which grew of 3.6%, its largest increase since 2007.

During these past years, and following the raise in expenditure in the defence field, the financial crisis and the limited budgetary solutions offered by the governement, the finances are in deficit.  Amongst the long term problems are: inadequate investments in economic infrastructures, rapidly raising medical costs and retirement costs caused by aging of the population, a significant foreign trade and budget deficit and a stagnation of family incomes.

After having built their growth based on internal consumption for a long time, the American administration has recently indicated its willingness to switch to a model where growth would be coming from exports.

Main branches of industry

The American agricultural sector is without a doubt, the biggest in the world. It is characterized by high productivity and by the use of modern technologies. The United States is one of the major producers of corn, soya, beef and cotton.  California alone produces more than 12% of the country's total agricultural production.  Nevertheless, agriculture only accounts for 1% of the American GNP.

The United States is a very industrialized country. The Industrial sector contributes almost a quarter of the GNP and includes a large variety of activities. The most significant are the manufacturing of electric and electronic machinery, chemical products, industrial machinery, the food industry and automobile sectors. It is also the world leader in aerospace and pharmaceutical industries. The abandunce of natural resouces has turned the United States into a leader in the production of several minerals and allows it to maintain a diversified production. It  is thus the biggest world producer of liquid natural gas, aluminum, electricity and nuclear energy. It is the third oil producer in the world.

The American economy is essentially based on services. The tertiary sector accounts for more than three-fourths of the GNP and of the manpower.

International trade

The country has generally reduced trade barriers and integrated into the world economic system. The United States is convinced that trade promotes economic growth, social stability, and democracy in individual countries, and also helps to promotes better international relations. U.S. exports account for about a quarter of economic growth. According to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau, the trade balance deficit decreased in 2008 to its lowest level since November 2003.
The main trade partners of the United States are the countries of NAFTA (North American Free Trade Agreement composed of the United States, Mexico and Canada), China and the European Union.