US GDP in 2023

The United States has reigned supreme over the world economy for decades, a qualification established thanks to the calculation of the Gross Domestic Product (GDP) in particular. So what is the GDP of the most powerful nation in the world and how has it changed over the years? Can its inhabitants live decently there? Business Cool returns to crucial geopolitical data for each country on our planet.

GDP: Definition and calculation

Definition of GDP (Gross Domestic Product)

GDP (Gross Domestic Product) is an economic indicator that measures the value of all goods and services produced in a country in a given year. When we mention a GDP, this is based on the elements calculated the previous year. Thus, the 2023 GDP of the United States refers to data from 2022.

GDP includes final goods and services, that is, those intended for final use and not for the production of subsequent goods or services. GDP is used to measure a country’s wealth and to compare its economic growth with that of other countries.

Calculation of GDP

There are several ways to calculate GDP, but the most commonly used method and the one we use is: GDP = household consumption + business investment + government spending + exports – imports.

Household consumption measures the value of goods and services purchased by households for their own use. Business investment includes expenditures made by businesses to purchase machinery, equipment and new buildings. Government spending highlights public expenditures such as those related to health, education and defence. Exports are goods and services produced domestically and sold abroad, while imports are goods and services purchased from other countries and then imported into the country, aka the United States.

It is important to note that the GDP of the United States in 2023 does not measure the quality of life of the people of a country or the well-being of the population. It also does not take into account unpaid economic activities, such as domestic or voluntary work, which are nevertheless of significant value for any country.

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US GDP in 2023

If the COVID crisis has had an impact on all the economies of the world, the United States was quick to resume its march forward. After a post-pandemic year marked by unprecedented growth since 1984 (5.9%), this continued in 2022 with an increase of 2.1%, explained by a constant need to consume, despite a power to buying reduced by rising interest rates and inflation. A question remains, can they continue on this dynamic indefinitely? It is difficult to answer with certainty today, but one conclusion is clear: the United States remains the most powerful nation on our planet.

25,400 billion dollars: this is the GDP of the United States in 2023, more than seven billion more than China, considered the second world power.

GDP per capita in the United States in 2023

GDP per capita is a measure of the economic activity of a country based on the average income of its citizens. The higher this measure, the more comfortable the average standard of living of each resident of a country. A country can have a high overall GDP, without its inhabitants having a comfortable standard of living.

This is the case of China, second in the ranking of global GDP with approximately 19,000 billion dollars, for a GDP per capita estimated at $12,700 gross per year, ie the 70th mark in the world ranking. The United States is placed 11th. GDP per capita in the United States is $70,000 gross per year on average. France comes in 43rd position, with $43,000 gross per year.

Read also: France’s GDP in 2023

The evolution of growth in the United States since 1970

Since 1970, the American economy has experienced periods of strong growth, but also less prosperous periods, due to significant economic events, such as the oil shock of 1973, deindustrialization in the early 1980s, the increase in unemployment and the rise in oil prices due to the Gulf War in the early 1990s. Dip periods visible on the graph above.

Overall, however, the U.S. economy has grown relatively steadily and maintained its position as a world leader, despite the tragic events of 2001, the financial crisis of 2007, and the more recent COVID-19 pandemic. as shown by the data of the curve presented previously. However, the pandemic has affected many countries and slowed the growth of the vast majority of global powers in the northern hemisphere.

The American economy has become increasingly service-oriented, with a reduction in the importance of manufacturing industry, with unchallenged dominance in the areas of industrial production, imports, services, production electricity, air transport, foreign investment and, above all, oil production. The country is also the third tourist nation in the world (behind France and Spain). A varied economy, which has known how to exploit the riches of its territory for decades.

Read also: What are the greatest powers in the world?

The GDP of the United States compared to other world powers

If the American nation still dominates the world economy, its status could be threatened in the years to come, with the advent of new powers. While the United States was at its peak in 1945, taking advantage of the devastation caused by the Second World War in Europe, Japan and this same Europe gradually reduced their backwardness from the 1960s. In the 2000s, other countries also want to make a place for themselves on the world economic scene, led by China, today proclaimed the world’s second power.

Read also: Ranking of countries by GDP 2022: the richest countries in the world