A recent report by the Economist newspaper addressed the economic superiority of the United States over the rest of the rich countries, noting that in the 1990s the US Competitiveness Policy Committee predicted that the country’s economy would suffer from slower growth compared to other industrialized countries over the foreseeable future.
This assessment – according to the newspaper – reflected the growing concern at the time about the superiority of other economies such as Japan and Europe.
But reality proved these expectations wrong. While Japan entered a long period of recession and slow growth in Europe, the United States witnessed a mini economic renaissance led by the Internet revolution.
Today, despite the new challenges and fears of the United States losing its dominant economic position in light of the rise of China, the American economy has proven that it still outperforms its competitors, as it has grown at a faster pace than other advanced economies over the past three decades, according to the newspaper.
Better economic performance
Since the beginning of 2020, before the Covid-19 pandemic, the US economy has recorded real growth of 10%, which is equivalent to 3 times the average growth in the rest of the Group of Seven (G7) countries.
According to the International Monetary Fund, the United States is the only country within the Group of Twenty (G20) whose economic output and employment numbers exceeded expectations before the pandemic.
This economic dynamism was reflected in the daily lives of Americans, as their travel and spending abroad increased, which reflects the level of confidence in the domestic economy and its ability to provide opportunities and jobs, according to the same source.
The strength of the dollar and increased confidence in the economy
Economic growth in the United States was accompanied by the strengthening of the dollar’s position as the dominant global currency.
According to the Economist, the strength of the dollar means the ability of American companies to easily enter into international trade, as well as the ability of foreign investors to trust American assets.
This was evident in the large numbers of Americans traveling and spending record amounts outside the country, reflecting the high purchasing power of the dollar.
Despite expectations that prevailed a decade ago that China would surpass the American economy to become the largest economy in the world, reality indicates the opposite. China has witnessed a slowdown in the growth of its gross domestic product, which fell to about 65% of US output in 2024 after it was 75% in 2021.
Strong geographical and infrastructure advantages
According to the Economist, a large part of this success is attributed to the geographical advantages that the United States enjoys. As a subcontinental economy spanning 50 states, American companies have easy access to a huge and diverse consumer market.
This market allows companies to launch their products or implement their ideas quickly and efficiently on a large scale, from California to Michigan and the rest of the states.
In addition, the United States has a large, integrated labor market that allows workers to move to better jobs and attracts the workforce to the most productive sectors.
The United States’ possession of relatively open borders with Latin American countries is also a source of strengthening the labor force, as it provides the influx of manual labor required for difficult sectors such as agriculture and construction, which enhances the strength of the American economy.
Growth enhanced by friendly policies
The success of the American economy – according to The Economist – is not limited to the advantages of the free market. Government policies have played a pivotal role in stimulating growth and promoting economic stability.
In times of crises, such as the 2007-2009 global financial crisis, the US government took aggressive measures to revive the economy, such as cleaning up bank balance sheets and using monetary policies extensively to support growth.
During the slowdown of the Covid-19 pandemic, the government responded firmly by providing huge stimulus packages that helped the American economy recover faster than its counterparts in other countries, according to the newspaper.
Although this financial support contributed to the rise in global inflation, it reflects the government’s willingness to intervene when necessary.
Challenges and concerns about sustainability
Despite the strong economic performance, the United States faces major challenges that reflect weaknesses in the economic model.
For example, the average life expectancy of those born in the United States is 79 years, 3 years less than the average in Western Europe.
This large difference reflects structural health problems such as high obesity rates, the spread of drug-related health crises, in addition to problems related to armed violence and road accidents.
The US economic crisis is not without social disadvantages such as economic inequality, as wealth distribution remains a major challenge despite strong growth.
Future expectations
Despite all these challenges, the United States has the unique advantage of economic dynamism, which is the primary driver of its continued growth.
Despite internal political fluctuations and fears of fiscal deficits, the United States remains able to confront challenges and outperform other world economies thanks to its ability to innovate and invest in human and natural resources, according to The Economist.
This economic flexibility represents the greatest hope for continued American superiority on the global stage, even in light of escalating competition from emerging economies such as China and India.
Despite the challenges and growing concerns about the decline in the economic power of the United States, the facts indicate that this country’s economy is still capable of providing an outstanding performance that exceeds its peers, and continues to shape the face of the global economy thanks to its dynamism and flexibility.
