Just One U.S. GDP Chart to Talk About

U.S. winning world economic war, axios.com, Neil Irwin.

The United States economy grew faster than any other large, advanced economy last year, by a wide margin, and is on track to do so again in 2024.

Why it matters: America’s outperformance is rooted in its distinctive structural strengths, policy choices, and some luck. It reflects a fundamental resilience in the world’s largest economy that is easy to overlook amid the nation’s problems.

By the numbers: U.S. GDP looks to have grown 2.5% in 2023, according to the IMF’s hot-off-the-presses World Economic Outlook, the highest among the G7 economies (Japan was second at 1.9%).

  • IMF economists forecast similarly best-in-class growth this year, with 2.1% U.S. growth (second place: Canada at 1.4%).

State of play: All countries were dealing with the same problems of post-pandemic inflation and high interest rates meant to combat it. But the U.S. managed to achieve solid growth in spite of those headwinds.

  • Strong growth in the U.S. labor force was one factor — both due to more Americans choosing to enter the workforce and a surge in immigration.
  • The U.S. also experienced strong productivity growth fueled by an innovative corporate sector and, Biden administration officials argue, big federal investments in infrastructure and manufacturing capacity.

AB: Axios did not give detail as to more Americans entering the workforce. A source to the more Americans thought choosing to enter the workforce is supported by as taken from; Part-time jobs are at record high as Americans seek work-life balance, usatoday.com, Paul Davidson. I am sure Axios has a source too. Where? I may have missed it and it is an important detail.

December 2023; 22 million Americans chose to work part time, an all-time high, Labor Department figures show. That’s 13.9% of all workers, the largest share since February 2020 and among the highest over the past two decades. Though many are working for companies, others are working as gig or contract workers or have their own businesses.

AB: I like the chart as it has a good and timely information. I do not care much for terms such as “hot off the press” amd “best in class.” Those two terms sound more like advertising and the last being used by the big three automotive.