United States: Economic and Political Overview
The United States is the world's largest economy ahead of China. According to estimates by the Bureau of Economic Analysis, in 2025, real GDP grew by 2.1%, down from 2.8% in 2024. The 2025 growth primarily reflected increases in consumer spending and investment. More specifically, consumer spending rose due to gains in services and goods. Healthcare, particularly hospital and outpatient services, led service growth; whereas recreational goods and vehicles, driven by information processing equipment and motor vehicles, boosted goods spending. Government spending increased at both state and federal levels. State and local growth were driven by employee compensation, while federal growth was led by defence expenditures (data Bureau of Economic Analysis). According to the IMF, the rate of economic activity is anticipated to pick up slightly in 2026, to 2.3%, easing to 2.2% the following year.
Concerning public finances, in fiscal year 2025 (which ended on September 30), the federal budget deficit was USD 1.8 trillion, down USD 41 billion (2%) from 2024, equaling 5.9% of GDP (above the 50-year average of 3.8%). Revenues increased 6% (USD 317 billion), driven by higher individual income taxes and customs duties, while outlays rose 4% (USD 275 billion). Net interest on the public debt surpassed USD 1 trillion for the first time. Federal debt held by the public reached 99.4% of GDP (data Congressional Budget Office). The CBO forecasts a USD 1.9 trillion federal budget deficit for fiscal year 2026 (5.8% of GDP), roughly unchanged in 2027 (USD 1.89 trillion), and hitting USD 3.1 trillion in 2036. As per the IMF, persistent high deficits and interest expenses have led to a rise in general government debt, which was estimated at general government debt estimated at 121% of GDP in 2024. Data by the U.S. Bureau of Labor Statistics show that inflation increased 3.4% over the 12 months ending in August 2026. The core index (excluding food and energy) rose 2.4%, while the energy index climbed 16.3%. The food index grew by 2.7% over the same period. After three cuts during 2025 took the federal funds rate to 3.5%-3.75%, renewed price pressure prompted the Fed to raise it by 0.25% to 3.75%-4% in September 2026, in order to balance employment and price stability. The IMF forecasts an inflation rate of 3.6% in 2026, easing to 2.4% the following year.
Hiring has eased following significant U.S. central bank rate hikes in 2022 and 2023. However, the economy remained strong due to a resilient labor market, characterized by historically low layoffs and wage-driven consumer spending. The unemployment rate stood at 4.1% in August 2026 (Bureau of Labor Statistics), with the CBO expecting an annual average of 4.6% for the year. Overall, American citizens enjoy one of the highest GDPs (PPP) per capita in the world, estimated at more than USD 90,026 in 2025 by the World Bank. Nevertheless, inequalities are still significant, as they tend to be worsened by current public health policies (with rising numbers of people without health insurance). In 2025, the poverty rate was 10.2%, with 34.5 million people in poverty, down from 10.7% the previous year (U.S. Census – latest data available).
| Main Indicators | 2025 | 2026 (E) | 2027 (E) | 2028 (E) | 2029 (E) |
| GDP (billions USD) | 30,767.08 | 32,383.92 | 33,790.04 | 35,065.90 | 36,360.58 |
| GDP (Constant Prices, Annual % Change) | 2.1 | 2.3 | 2.1 | 2.1 | 1.9 |
| GDP per Capita (USD) | 89,991 | 94,430 | 98,278 | 101,715 | 105,171 |
| General Government Balance (in % of GDP) | -6.8 | -7.5 | -7.4 | -7.6 | -7.5 |
| General Government Gross Debt (in % of GDP) | 123.9 | 125.8 | 128.6 | 132.1 | 135.5 |
| Inflation Rate (%) | 2.7 | 3.2 | 2.1 | 2.2 | 2.2 |
| Unemployment Rate (% of the Labour Force) | 4.3 | 4.4 | 4.2 | 4.1 | 3.9 |
| Current Account (in % of GDP) | -3.6 | -3.7 | -3.6 | -3.6 | -3.6 |
Source: IMF – World Economic Outlook Database, Latest data available
The United States is a highly industrialised country with high levels of productivity and the use of modern technologies. Key sectors include agriculture (corn, soy, beef, and cotton); manufacturing of machinery, chemical products, food, and automobiles; and a booming tertiary market focused on finance, new technologies, insurance, real estate, rentals, and leases. The American agricultural sector is without doubt one of the world's largest, with California alone producing more than one-third of the country's vegetables and two-thirds of its fruits and nuts. Nevertheless, agriculture only accounts for 0.9% of GDP and employs 2% of the workforce (World Bank, latest data available). Based on data from the Bureau of Economic Analysis, agriculture, food, and related industries contributed approximately USD 1.537 trillion to U.S. GDP in 2023, accounting for 5.5%. The output from American farms made up USD 222.3 billion of this total, representing around 0.8% of GDP. The USDA’s September 2026 forecast projects net farm income at USD 158.4 billion for 2026—a USD 4.3 billion, or 2.6%, drop from 2025. Inflation-adjusted, the decline deepens to 5.5%. In 2025, U.S. corn production was estimated at a record 17.0 billion bushels, up 14% from 2024. Rice fell 7% to 206.7 million cwt, soybeans decreased 7% to 4.26 billion bushels, and cotton eased to 13.9 million 480-pound bales (data USDA).
Including a broad range of activities, the industrial sector contributes to 17.6% of GDP and employs 19% of the workforce (World Bank). Besides the industries mentioned above, the country is also the world leader in the aerospace and pharmaceutical industries. Thanks to its abundant natural resources, the United States has become a leader in the production of several minerals and has been able to maintain diversified production. The country is the world's largest producer of liquified natural gas, aluminium, electricity and nuclear energy. It is the world's third-largest oil producer and has also developed shale gas extraction on a large scale. In terms of value-added, the U.S. is the second-largest manufacturing nation in the world behind China. The manufacturing sector alone contributes USD 2.65 trillion to the economy, employs nearly 13 million workers, and represents 10.3% of GDP (U.S. Department of Commerce).
The American economy is essentially based on services: the tertiary sector accounts for more than three-fourths of GDP (76.4%) and employs 80% of the country's workforce (World Bank). The United States hosts the world's largest and most liquid financial markets. In 2023, the finance and insurance sector accounted for 7.3% of GDP (U.S. Trade Dept.). At the end of the same period, the U.S. banking system had USD 23.7 trillion in assets and a quarterly net income of USD 38.4 billion. The latest figures from the Bureau of Economic Analysis show that U.S. private services-producing industries’ value-added increased by 4% quarter-on-quarter in Q3/2024, the leading contributors to the increase being retail trade (led by motor vehicles and parts dealers); health care and social assistance (led by ambulatory health care services); and information (led by data processing, internet publishing, and other information services). According to the World Travel & Tourism Council (WTTC), the U.S. is the world's leading travel & tourism market, with a USD 2.63 trillion contribution to the economy in 2025, though international visitor spending fell 4.6% to USD 176 billion.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 1.5 | 18.9 | 79.6 |
| Value Added (in % of GDP) | 0.9 | 17.6 | 76.3 |
Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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The business rankings model measures the quality or attractiveness of the business environment in a series of countries. It examines separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
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Latest Update: October 2026
