Washington, D.C. — A new Center for American Progress column finds that the U.S. economy is among the strongest in the G7. The economy faced a multitude of economic risks and uncertainties in the first half of the year, between further interest rate hikes, House Speaker Kevin McCarthy’s (R-CA) seemingly politically driven debt default crisis, and a series of bank failures. Despite these uncertainties, however, the U.S. economy remains resilient as inflation cools, a strong labor market persists, and economic growth continues.
This column analyzes seven indicators to determine the strength of the U.S. economy in comparison with that of its global counterparts, including inflation, energy prices, gross domestic product (GDP), the unemployment rate, the long-term unemployment rate, the 2023 International Monetary Fund (IMF) GDP forecast, and the 2023 IMF unemployment rate forecast. When analyzing these indicators, this column makes it clear that the United States remains one of the most sustained resilient economies in the G7. Some of the key takeaways from the analysis of these indicators include:
- The United States has the lowest inflation rate in the G7. Annual inflation has been declining for the past 12 months and is substantially down from its highs in 2022.
- Energy prices are down from their 2022 highs. The United States has the second-strongest progress on lowering energy prices in the G7. The Biden administration’s clean energy investments are paving the way to reduce the United States’ reliance on gas—and its price volatilities—over the long run.
- The United States continues to have the strongest economic recovery in the G7. The U.S. economy continues to grow after the nation fully regained all pre-pandemic GDP losses and surpassed pre-pandemic levels in 2021, while some other countries in the G7 have failed to recover output lost from the pandemic-induced recession.
“The Biden administration’s plan to grow the economy by investing in the middle class has helped build a stable foundation for economic growth,” said Rose Khattar, director of economic analysis for Inclusive Economy at CAP and co-author of the column. “Across many indicators, the United States has outpaced its competitors and recorded the lowest inflation rate and the strongest economic recovery in the G7. This is not a coincidence; it’s further proof that investing in the middle class continues to drive the United States to a strong, sustainable economy, despite ongoing economic risks.”
Read the column: “7 Reasons the U.S. Economy Is Among the Strongest in the G7” by Rose Khattar and Jessica Vela
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