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The United States maintains its status as the biggest global economy and the wealthiest country, a pinnacle position it has preserved from 1960 to date. Its economy boasts the vital hallmark of diversity, propelled remarkably by important sectors like technology, manufacturing, finance, and services. We enjoy a considerable consumer market, resilient infrastructure, innovative and entrepreneurial spirit, and other favorable business conditions.
However, in the short few months that the largely unforeseen crisis of the COVID-19 pandemic decimated the world, it packed a punch that even the strongest economy will feel for a few years. The US is recovering from the predicament, and in the process, it is stirring up economic trends that are impacting the economy positively and negatively. Here are some of the top trends and insights on the US economy right now:
The Gambling Industry Continues to Rake in Serious Revenue
The US gambling industry’s recent journey to become an economic powerhouse is nothing short of remarkable. As states continue to legalize and regulate internet gambling, the industry’s profile and popularity have scaled to unprecedented heights. It has a striking impact on the country’s economy, generating billions in tax revenue and providing stable employment to 2 million+ Americans. In a short period, it has become a significant contributor to today’s economy. The online gambling industry supports an economic impact with:
- Over 1.8 million jobs that generate $33 billion in wages, tips, and other kinds of labor income
- $260 billion+ of business output sales
- Over $40 billion in federal, state, and local taxes
New Jersey generates the most revenue of all US states and has dozens of legal online casinos for NJ players to explore. Here is our NJ casino list of gambling destinations you can check out, along with their detailed reviews.
The Economy is Expanding Better than Expected
The US GDP has expanded at an estimated 2.0% to 2.4% pace in the first half of 2023. While there was a bit of drag at the beginning of the year with business sentiment gloomy, there are indications of things taking a turn for the better. Consumer spending – which accounts for 65% of GDP – has been consistent throughout the year. If consumer spending maintains the same drive in the second half, things could slow to pre-pandemic normalcy.
The Debt Ceiling Resolution Costs the US Fich’s AAA Status
A debt ceiling crisis was prevented in June, but the government cut spending on some nondefense discretionary areas. As a result, 2024 and 2025 could experience a slight drag in economic progression. A similar case occurred in the 2011 debt ceiling episode, where GDP spending was reduced by 0.7% a year after it was resolved. The government’s higher borrowing levels and recurring debt ceiling incidences have resulted in Fich – an American credit rating agency – dropping the country’s AAA rating to an AA+.
Climate Change Remains a Significant Threat
Climate change will cost the world 10% of its economy by 2050. As the globe continues warming up, numerous sectors like agriculture, human mortality, labor, energy, and coastal storms will be impacted. Even modest warming is predicted to leave a mark on the US economy. It will lose 1% to 4% GPD annually through these effects if high gas emissions continue.
Inflation is Slowly Improving but Still High in Many Areas
Inflation seems to be lowering slowly, but the first half of the year is proving more persistent than expected. The drop in energy prices has helped curb headline inflation, but such progress has yet to be seen in food prices, volatile energy, and other core inflation metrics. While the inflation in core goods has fallen from 12% to 0.8% in the past year, core services have only dropped from 7.3% to 6.1%. Gradual improvement is still expected in the future.
Final Thoughts About U.S. Economic Outlook 2023
With the US healing from a pandemic, managing the threat of a recession, and battling environmental concerns, it is no surprise that its economic outlook has shifted in the past few years. In 2023, some trends have died while others have blossomed in the face of uncertainty. Whichever the case, the US is set to continue making glowing contributions to the global economy.
