The economy of the USA is one of the largest economies in the world today. It is a free market economy in business services and consumer goods. The Government of the USA imposes laws to protect the welfare of everyone in the nation and functions like a command economy in the areas of defense, medical care, specific retirement benefits, and other vital areas.
Kavan Choksi- a business expert, speaks
Kavan Choksi is an eminent specialist in the areas of business management, investments, and wealth. He has helped several businesses in retail, fast-moving consumer products, and the luxury market to earn lucrative profits from their investments. He has invaluable knowledge of finance and economics and works strategically in tandem with companies to help them make sound financial decisions with their investments. He is highly respected by his peers for his passion for his work and dedication to his clients to help them generate optimal profits from their investments.
According to him, the economy of the USA has an extensively developed services sector that is technologically advanced. This is one of the key reasons why the US economy is so strong today. In fact, the above services sector accounts for almost 80% of its output and is dominated by companies specializing in healthcare, retail, technology, and financial services.
An insight into the strong economic recovery of the USA in 2022
The rate of recovery from the coronavirus pandemic in the USA differs from the other major and advanced economies in the world. Compared to Japan and Europe, the GDP of the USA surpassed its pre-pandemic levels in the 3rd quarter of last year, and it was anticipated that it would attain its pre-crisis trends in the 4th quarter of 2021 by experts.
Factors leading to the faster economic recovery in the USA
The pace of economic recovery in Europe was not as substantial as in the USA last year in its 2nd and 3rd quarters. In the USA, domestic spending recovered faster than its GDP because of the surge in demand for imports. There has been a growth in the trade deficit, and a rise in imports was relatively buoyant last year. On the other hand, exports in the nation have witnessed a considerable contraction.
Another contributing factor towards economic recovery in the nation has been the fiscal stimulus introduced in America. It has primarily been absolute and better compared to other nations in the world. Since the economy of the USA is more services oriented compared to other nations in the globe, there has been a natural shift towards goods. This trend played a crucial role in helping the USA gain a faster economic recovery than the other nations in the post-pandemic era.
Business expert Kavan Choksi observes that if you compare the USA to the other advanced nations in the world, its economic recovery stands out because the consumer spending trends in the country have surged like never before. As the coronavirus pandemic reduced services that were contact-intensive in nature across the globe, the consumption of services in America had a strong rebound. The consumption of domestic goods rose by 15% in the USA, and this was one of the critical factors that made the economy of the USA stable compared to other nations.