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Contextualizing the Size of the U.S. Economy

23102018_size of economy

Contextualizing the Size of the U.S. Economy

The United States is the world’s largest economy, however it can be difficult to contextualize just how big $19.4 trillion actually is. While the only comparable single economy in the world would be China at $12.2 trillion, the U.S. is still ~60 per cent larger. In fact the U.S. needs to be compared to entire regions like Asia or Europe, which obviously comprise of numerous countries in order to create a suitably sized peer.

The $80 Trillion World Economy

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Source: HowMuch.net

This comparison of the U.S. to the world is somewhat well known and doesn’t add too much incremental context outside of making the point that the U.S. is really big. The following chart however attempts to take a more granular approach, syncing up similarly sized U.S. states (in economic / GDP terms) with similarly sized countries.

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We can see that just three U.S. states, namely California, Texas, and New York, generate the equivalent GDP to the major economies of the United Kingdom, Canada and South Korea combined. As we look across the map of the U.S. we add other significant economies like Indonesia, Netherlands, Saudi Arabia, Singapore, etc. to the mix. Perhaps even more impressively, is that sparsely populated states, like Montana (1million people) and North Dakota (750 thousand people) have country-sized economies in line with Uzbekistan (32million people) and Croatia (4 million people) respectively.

Putting the Australian economy in the context of the U.S. shows that New York generates ~20 per cent more GDP than the whole of Australia, while California outputs more than twice as much.

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Amit joined MGIM in April 2018 as a Senior Research Analyst after spending seven years as a credit analyst at Credit Agricole and Citigroup, based in New York. Prior to this, Amit was an investment banker with Citigroup for five years in New York and Sydney, focusing on Media and Telecoms; Metals and Mining; and Consumer Products.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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