1.

Brief introduction about the USA’s economy

1.1 . The USA economy in 2019

“The U.S. has retained its position of being the world’s largest economy since 1871,” according to
Investopedia. In 2019, The Gross Domestic Product (GDP) value of USA represents 23.6% of the world
economy. (https://www.investopedia.com/insights/worlds-top-economies/).The GDP in the USA was
worth 21.429 trillion US dollars in 2019 (https://www.statista.com/statistics/188105/annual-gdp-of-the-
united-states-since-1990/). In particular, the real GDP was $19.1 trillion which increased by 2.3 percent,
and the nominal GDP was $21.4 trillion in 2019 (https://www.thebalance.com/nominal-gdp-definition-
formula-comparison-to-real-4172113)

Consumer Price Index (CPI) in 2019 was approximately 255.7 and the rate of inflation was 1.8%.
(https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-
1913-) In 2019, consumer prices for all items rose 2.3 percent compared to 2018.
(https://www.bls.gov/opub/ted/2020/consumer-price-index-2019-in-review.htm)

The U.S. is the world's largest importer with 13.4% share of global imports equal to $2.6 trillion of goods
(https://www.visualcapitalist.com/map-worlds-biggest-importers/#:~:text=The%20world's%20largest
%20single%20importer,and%20Germany%20(%241.3%20trillion).) and the second-largest exporter,
with exports valued at 1.64 trillion US dollars ( https://www.statista.com/statistics/264623/leading-
export-countries-worldwide/)

The U.S. dollar is the currency most used in foreign transactions and is the largest reserve currency in the
world. As of the fourth quarter of 2019, it constitutes more than 60% of all recognized foreign exchange
reserves of the central bank. (https://www.thebalance.com/foreign-exchange-reserves-3306258)

Distribution of the workforce across economic sectors in the United States (2019): agriculture, forestry
and fishing accounted for 1.42%, Industry which including construction represented for 19.18% and
Service was the highest with 79.41% (https://www.statista.com/statistics/270072/distribution-of-the-
workforce-across-economic-sectors-in-the-united-states/)

1.2 . US Economic Outlook for 2020 and Beyond

The COVID-19 pandemic has affected the U.S. economy. Growth declined by 5% in the first quarter,
signaling the onset of the 2020 recession.

U.S. nominal GDP was $21.534 trillion and

real GDP was $18.988 trillion for the first
quarter of 2020
(https://www.economy.com/united-
states/nominal-gross-domestic-product)

Company spending fell by 10.5 per cent.

Exports are down by 8.7%. The majority of
U.S. exports are oil and commercial aircraft.
Both of these sectors have been influenced
by the Covid-19 pandemic. Imports
decreased by 15.5 per cent. Federal government spending increased by 1.9% and state and local spending
increased by 0.2%. (https://www.thebalance.com/u-s-gdp-current-statistics-3305731)

After the loss of 881,000 jobs in March. In April 2020, the US economy lost an unprecedented 20.5
million jobs. (https://www.thebalance.com/recession-2020-4846657) It is projected that the
unemployment rate will average 9.3% in 2020 and it will drop to 6.5% in 2021 and 5.5% in 2022.
Inflation will average 0.8% in 2020. This figure will rise to 1.6% in 2021 and 1.7% in 2022
(https://www.thebalance.com/us-economic-outlook-3305669 )

4. Suggestion on how country can improve their economic