Global Economy and United States

The global economy will meet significant challenges this year as central bank of the United States and the most powerful financial institution in the world initiates its financial tightening. The stable GDP and employment growth has been restricted by poor productive effort and since there’s no carrying of high living standards, United States could encounter decades of “unhealthy economic populism,” according to American Enterprise Institute’s James Pethokoukis. The U.S. is regarded to maintain their position as the world’s largest economy based from a recent study by U.K.-based Centre for Economics and Business Research. However, for more than succeeding sixteen years, the aspect of global economy is believed to change from where they positioned today. Even though U.S. is believed to keep a mark among the Group of Eight body consist of world’s largest economies by the year 2031, some members will probably have not as much luck. The role of U.S. in global economy is important to developing countries because U.S. doesn’t really trade but purchases strong distribution instead. U.S. also invests and purchase commodities worth hundreds of billions of dollars, manufactured by developing countries. Since U.S. is a reasonably secure and safe place to invest, it gives large shelter for foreign capital investments. The revenue produced by investments in the U.S. is generally utilized by foreign investors to begin and develop their businesses in their native country. U.S. is like a generator, supplying energy to the global economy. The accomplishment of U.S. is not because of their natural resources or growing population but their systematic process enabling many market players to make their own options, with minimal government interruption. Finally, U.S. takes the responsibilities as the world’s largest economy. By providing entry to its domestic markets and encouraging other countries to extend businesses with them, U.S. serves a central contributor for the growth of developing countries.

Jingqian Zhang