In recent years, the U.S. economy has been showing strong growth, exceeding many expectations. So why has the U.S. economy been able to continue to grow without a recession?First, the assets of U.S. residents are still in very good shape, giving them sufficient spending power. 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 US dollars, of which the balance of household deposits of American residents reached 17056 trillion dollars, per capita deposits reached 5$110,000. This huge size of deposits has provided a huge consumption impetus for the U.S. economy and has become one of the biggest drivers of economic growth.
In addition, U.S. residents have accumulated significant excess savings during the pandemic, which are expected to continue into the first half of 2024. This means that private consumption in the United States will remain relatively dynamic in the coming quarters. At the same time, the income of employed people in the United States exceeded the increase in the consumption** index, which further contributed to the growth of consumption. Therefore, it is unlikely that the role of consumption in supporting the economy will weaken in the short term.
In addition, investment is also one of the important factors for the U.S. economy to maintain growth. Whether it is Obama, Trump or Biden, they are actively promoting the return of manufacturing to the United States and incorporating emerging industries into the strategic development plan. The investment expansion effect of these measures has become one of the important engines of economic growth. In addition, the U.S. foreign trade deficit is also narrowing, and the downward trend of inflation has also had a positive impact on economic growth.
In addition to the above factors, the U.S. Department of Commerce has revised the base year prices in the economic accounting process upwards from the GDP base of the past few years. This adjustment has led to a further expansion of the US economy, which, together with the effects of inflation, has boosted both real economic development and official consumption and investment spending from high debt. Therefore, by all accounts, the momentum of sustained economic growth in the United States is very strong, and there will never be a recession as expected.
In recent years, the U.S. economy has entered a recession, but in reality, the U.S. economy has not been in recession as expected. The main reasons are as follows.
First, the U.S. economy has relatively stable and healthy fundamentals. Compared to other advanced economies, the United States has a large economy and strong resilience. In addition, the United States is also a global leader in innovation and technological strength, and has advantages in some emerging industries. This has allowed the U.S. economy to maintain relatively stable growth in the face of a weakening global economy.
Second, the United States** has adopted a series of active economic policies to expand domestic demand and stimulate economic growth. In the face of downward pressure on the economy, the United States stimulates the economy by lowering taxes and increasing spending. In addition, the United States has actively promoted external development through negotiations and agreements. The implementation of these policies has played a positive role in boosting market confidence and stimulating enterprises' willingness to invest.
Finally, the sound functioning of the U.S. financial system also provides a guarantee for economic growth. The U.S. financial market is relatively developed, with a well-developed regulatory system and risk management mechanism. This will help maintain the stability of the financial market, reduce the impact of financial risks on the economy, and provide a good environment for economic growth.
In summary, the reason why the US economy broke through the recession prediction is its stable fundamentals, active economic policies, and sound financial system. The combination of these factors has enabled the U.S. economy to sustain growth and maintain a relatively strong competitive advantage in a global economic downturn.
An analysis of why the U.S. economy was able to break through recession predictions shows that the strong growth of the U.S. economy is not accidental. As one of the world's largest economies, the U.S. economic growth is driven by many factors. First, the assets of U.S. residents remain in good shape, giving them sufficient spending power to drive economic growth. Second, active economic policies and a sound financial system have provided solid support for the economy. Coupled with the expansion effect of investment and the positive promotion of foreign countries, the U.S. economy can maintain a relatively stable growth momentum in the face of a weakening global economy. The combination of these factors has given the U.S. economy a strong resilience and competitive advantage.
However, we cannot ignore some of the challenges and concerns facing the U.S. economy. The uncertainty of the global economic situation, the escalation of frictions, and the risks in the financial market may have a certain impact on the U.S. economy. Therefore, the United States needs to continue to take active measures to expand domestic demand, stabilize the financial market, and enhance industrial competitiveness to cope with possible risks and challenges. At the same time, other countries can also draw inspiration from the experience of the US economy to strengthen economic restructuring and the cultivation of innovation capabilities, so as to improve their own economic development level.