The economy of the United States (US) is a mixed capitalist economy with a very high level of industry, industrialization, and development.[29][30] It is not only a developed economy but also the largest economy in the world by nominal GDP and the second largest in the world by purchasing power parity (PPP).[31] The US has the 7th highest GDP per capita in the world by nominal value and the 11th highest in the world by PPP in 2016.[32][33] The United States dollar (USD) is the most widely used currency in international transactions and the world’s most popular reserve currency, backed by advanced science and technology, superior military, confidence in the US government’s ability to repay its debts, the central role of the United States in the system of global organizations since World War II (WWII) and the petrodollar system.[34][35] Several countries use the US dollar as their official legal currency, and many others consider it a second most popular currency (de facto currency).[36][37] The largest trading partners of the United States include: China, Canada, Mexico, Japan, Germany, South Korea, the United Kingdom, France, India and Taiwan.[38]
The United States economy is developed thanks to rich natural resources, a synchronously developed infrastructure system and high labor productivity.[39] The value of natural resources is the second highest in the world, estimated at $45 trillion in 2016.[40] Americans have the highest household income and median wages among the Organization for Economic Cooperation and Development (OECD) countries, and the fourth highest per capita income in 2010, down two places from the highest level in 2007.[41][42] The United States also has the world’s largest national economy (excluding colonial possessions) since the 1890s.[43] The United States is the world’s third-largest producer of oil[44] and natural gas[45]. In 2016, the United States was the world’s largest trading nation, as well as the second-largest producer of goods, accounting for one-fifth of the world’s total output.[46] The United States not only has the largest economy, but also the largest industrial output according to the United Nations Conference on Trade and Development (UNCTAD).[47] The United States not only has the largest domestic market for goods, but also dominates the services market. Total trade reached $4.92 trillion in 2016.[48] Of the world’s 500 largest companies, 134 are headquartered in the United States.[49]
The United States is one of the largest and most influential financial markets in the world. The New York Stock Exchange (NYSE) is currently the largest stock exchange by capitalization.[50] Foreign investments in the United States reached $2.4 trillion,[51] while U.S. investments abroad exceeded $3.3 trillion.[52] The US economy is a leader in direct investment[53] and funding for research and development.[54] Consumer spending accounted for 71% of GDP in 2013.[55] The United States has the world’s largest consumer market, with average household spending five times that of Japan.[56] The US labor market has attracted immigrants from around the world, and the net immigration rate is consistently among the highest in the world.[57] The United States is ranked as one of the most competitive and efficient economies in the world by the Ease of Doing Business, the Global Competitiveness Report, and other reports.[58]
The US economy experienced a recession following the 2007–08 financial crisis, with output remaining below potential in 2013 according to the Congressional Budget Office.[59] However, the economy began to recover in the second half of 2009, and by October 2017, the unemployment rate had fallen from a high of 10% to 4.1%. By December 2014, the public debt ratio had exceeded 100% of GDP.[60] Total domestic financial assets totaled $131 trillion and total domestic financial debt was $106 trillion.[61]