In recent years, there has been talk about whether the U.S. economy will recession. Especially when the new crown epidemic is raging around the world, many institutions have ** the US economy will enter a recession. However, based on the latest statistics and economic performance, we can clearly see that the US economy is not in recession, but has achieved results that exceed expectations. So why is there no recession in the U.S. economy?
According to statistics, in terms of economic growth, the United States has shown strong momentum. In the first three quarters of 2023, the U.S. economy grew by 28%, more than other advanced economies. In the midst of a global economic downturn, the U.S. economy is thriving. In addition, the U.S. economy has also received some support in terms of inflation and exchange rates, which has significantly increased the size of its economy to 20278 trillion US dollars, the lead has expanded. These data all suggest that the US economy shows no signs of recession.
Expand: There are many reasons why the U.S. economy continues to grow. First of all, the assets of American residents are still high and their spending power is strong. According to statistics, as of June this year, the balance of deposits of American resident households and non-profit organizations was as high as 17786 trillion dollars. Of these deposits, U.S. resident households have a whopping 17056 trillion US dollars, with per capita deposits reaching 5$110,000. This amount of savings indicates that American residents have strong spending power and have enough money to spend. In addition, during the pandemic, U.S. households have accumulated about $430 billion in excess savings, which allows U.S. private consumption to remain viable in the coming quarters. At the same time, U.S. investment has also played an important supporting role. Whether it is housing investment, equipment investment or intellectual property investment, it has played a positive role in promoting the economic development of the United States. In recent years, the United States has been actively promoting the return of manufacturing to the United States, and the emerging industries have been included in the strategic development plan, which has provided a strong impetus for the economic growth of the United States. In addition, the narrowing of the U.S. foreign trade deficit and the downward trend in inflation have also played a positive role in the resilience of the U.S. economy.
In addition to the impressive performance of economic growth, the size of the US economy has also been further expanded. The U.S. Department of Commerce revised the base year prices in the U.S. economic accounting process, and after the amendment to the rules, the size of the U.S. economy was raised by $281.4 billion, raising the GDP base of previous years. Such adjustments, combined with the effects of inflation, have made it possible to reflect the true level of development of the US economy. In addition, official consumption and investment spending from high debt has also helped the U.S. economy grow.
Expanding: The growth of the U.S. economy is the result of macroeconomic adjustments and inflationary effects. The U.S. Department of Commerce revised the base year prices in the U.S. economic accounting process, resulting in an upward adjustment of the GDP base of previous years by $281.4 billion. Due to the impact of inflation, the real level of economic development is more accurately reflected. At the same time, high levels of debt have led to an increase in official consumption and investment spending, which has further contributed to the expansion of the US economy. On the whole, the growth of the size of the economy has enabled the US economy to maintain a good development momentum.
Finally, the U.S. economy has not experienced a recession because of its continued resilience and better-than-expected development. While many advanced economies are feeling a bleak outlook, the U.S. economy continues to show strong growth. At a time when many of the world's largest developing economies are striving to achieve the desired results, the United States has exceeded market expectations time and time again. These performances suggest that the U.S. economy is showing no signs of recession.
Expanding: The resilience and better-than-expected growth of the U.S. economy is a big reason why it has not experienced a recession. While the outlook for other advanced economies is uncertain, the U.S. economy has maintained strong growth. At the same time, the U.S. has outpaced market expectations time and time again in competition with many large developing economies. These performances clearly show that the U.S. economy has strong resilience and the potential for continued growth, so there are no signs of a recession.
To sum up, the U.S. economy has not experienced a recession, but has achieved results that exceed expectations. This is mainly due to a number of factors. First, the assets and spending power of American residents remain strong, and the expansion of excess savings and investment has also provided impetus to economic development. Second, the growth of the economic scale and macroeconomic adjustment have further demonstrated the economic strength of the United States. Finally, the resilience and better-than-expected growth of the U.S. economy demonstrates its strong resilience and potential for sustained growth.
Several conclusions can be drawn from an analysis of the discussion of the recession in the United States. First, the resilience and adaptability of the U.S. economy has allowed it to maintain steady growth during difficult times. Second, the spending power and investment activities of American residents play an important role in economic development. Finally, macroeconomic adjustment and the impact of inflation have further expanded the size of the US economy. Taken together, these factors can be seen why the U.S. economy has been able to avoid a recession and continue to grow strongly.