After years of being behind China and other emerging markets, 15 years to be exact, The US economy is once again the largest economy in the world. With a projected growth of 3.2% this year, it should be the first time since 1999 that the US economy has not seen itself falling behind in terms of global growth. That is great news for the once again world’s largest economy.
What is behind the economic resurgence in America? It starts with an increase and jobs and a decrease in unemployment. With the creation of over 250,000 jobs in the month of December, Americans saw unemployment drop to its lowest level since 2005 at 5.6%. A lot of this job growth has been in the area of construction and business services and the industrial sector have continued adding to their payrolls also.
Over 3 million US Citizens entered the job market last year because of the creation of new jobs, a figure that is the highest in over 15 years. The outlook for America to continue this trend is favorable, despite the fact that many other economies around the world will continue to struggle. The USA has also successfully managed to reduce its debt and cut spending, this helped the country to overcome the worst recession that they faced in history.
As the USA continues to see its economy grow, BRIC countries that were previously in the economic spotlight, such as Russia, Brazil, China and India, now find themselves struggling a economically. America has once again become the center of attention for the worlds many investors. If the American lawmakers continue to make prudent policy decisions, then analysts see no reason as to why the countries new push to the top will not keep them there for a long time to come.