The United States has one of the world’s wealthiest and most diversified economies, led by a highly productive services sector, advanced manufacturing, and world-class research and development. Until the onset of the Covid-19 pandemic in March 2020, the US enjoyed relatively robust economic growth sparked by cuts in taxes and burdensome regulations. Unfortunately, unchecked deficit spending not only continued but accelerated in response to the pandemic.
The United States’ economic freedom score is 74.8, making its economy the 20th freest in the 2021 Heritage Foundation Index. Its overall score decreased by 1.8 points from the previous year (76.6 in 2020), primarily because of a decline in fiscal health.
The 2021 score and ranking are its lowest ever in the Index although the country remains “mostly free.” The major obstacles to greater economic freedom in the United States continue to be excessive government spending, unsustainable levels of debt, and intrusive regulation of the healthcare and financial sectors.
The United States is ranked third among 32 countries in the Americas region, and its overall score is above the regional and world averages.
Forbes magazine says the economy has remained extremely stable since the recession ended 10 years ago. By historical standards, the volatility of quarter-to-quarter changes in GDP is unusually low. The US has a GDP of $20.513 trillion, notably due to high average incomes, capital investment, low unemployment and high consumer spending.
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