United States economy

The United States economy is the largest in the world by nominal size, with a GDP reaching US$29.18 trillion in 2024, accounting for approximately 27.5% of the global economy. This position has been maintained continuously since 1894, when the nation surpassed the United Kingdom to become the world’s number one industrial power. The economic structure is based on 3 pillars: services account for 77.6% of GDP, industry for 17.9%, and agriculture for 1.1%.

This article summarises the United States economic structure based on official data from World Bank and the Bureau of Economic Analysis (BEA). This is an extension of the page United States overview, delving into scale, growth, key industries, the role of the US dollar in global finance, and trade relations with Vietnam.

Scale and growth

The United States economy is 1.5 times the size of China’s (US$19.37 trillion), 6.6 times that of Japan, and 7 times that of Germany. GDP per capita reached US$66,682 in 2024 according to the World Bank, ranking in the global top 10 and 5.28 times higher than the world average.

Growth rate and inflation

GDP growth in 2024 reached 2.8%, exceeding the average for developed economies (1.7% according to the IMF). Over the past 30 years, the United States economy has maintained an average growth of 2.5% per year, with only 3 years of recession (2001 dot-com bubble, 2008-2009 financial crisis, 2020 COVID-19 pandemic). The inflation rate in 2024 reached 2.9%, close to the Federal Reserve’s 2% target.

GDP per capita

GDP per capita based on purchasing power parity (PPP) reached US$75,491 in 2024, ranking 8th in the world behind small nations such as Luxembourg, Singapore, Ireland, and Qatar. Among major economies (top 10 by nominal GDP), the United States leads in GDP per capita, 6 times that of China (US$12,969) and 5 times that of Brazil. Wealth disparity between states is significant: Massachusetts is the highest at US$95,000, and Mississippi is the lowest at US$49,000.

Share of the global economy

In 2024, the United States economy accounted for 27.5% of global GDP, the highest share in the past 20 years. After a period of decline to 23% in 2011, the share recovered thanks to high growth and a strong US dollar. Compared to 70 years ago: in 1955, the United States economy accounted for 40% of world GDP due to the post-World War II era. The share gradually declined as Europe and Japan recovered, followed by the rise of China. However, the United States still holds the number 1 position sustainably thanks to innovation and the strength of the US dollar.

Economic sector structure

The United States economy has shifted dramatically from an industrial economy in the mid-20th century to a service and technology economy in the 21st century. According to the BEA, the 2024 GDP structure is divided into 3 main groups: services 77.6%, industry 17.9%, agriculture 1.1%, with the remainder being taxes.

Structural shift process

In 1950, industry accounted for 34% of GDP, services 60%, and agriculture 7%. By 2024, industry had decreased to 17.9%, services had increased to 77.6%, and agriculture had decreased to 1.1%. This shift has occurred alongside urbanisation (83% of the population lives in urban areas) and globalisation (many industrial sectors have moved to China, Vietnam, and Mexico). Within the service sector, finance-insurance and information technology have seen the strongest growth.

Service sector

The service sector is the largest pillar of the United States economy, accounting for 77.6% of GDP and employing 80% of the workforce. Key sub-sectors include finance-insurance-real estate, information technology, healthcare, education, retail, and tourism.

Finance, insurance, and real estate (FIRE)

FIRE accounts for 20.7% of GDP, the largest of all sectors. Wall Street in Manhattan is the global financial centre with the world’s 2 largest stock exchanges: the NYSE (market capitalisation of US$28 trillion) and NASDAQ (US$24 trillion), 4 times the total of the UK stock exchanges. Financial giants JPMorgan Chase, Bank of America, Wells Fargo, and Goldman Sachs have assets in the trillions of US dollars. A detailed article on the United States financial system is available on PLI.

Information technology and software

The information technology sector accounts for approximately 10% of GDP but has contributed nearly 50% of economic growth over the past decade. Silicon Valley in the Bay Area, California, is the world’s largest technology hub, home to the headquarters of Apple, Google (Alphabet), Meta (Facebook), Nvidia, Tesla, and Netflix. The total market capitalisation of the 7 largest technology companies (“Magnificent 7”) exceeded US$15 trillion at the beginning of 2025 – larger than the GDP of any country other than the United States itself and China.

Healthcare and education

The healthcare sector accounts for 17.3% of GDP – the highest proportion in the world (compared to the OECD average of 9.9%). Healthcare spending reached US$4.9 trillion in 2024. Higher education accounts for approximately 2.5% of GDP with nearly 4,000 universities, attracting the highest number of international students in the world (1.1 million students in 2024). Ivy League schools and top research universities such as MIT, Stanford, and Caltech generate enormous revenue from tuition, research, and patents.

Retail and tourism

Retail accounts for 5.6% of GDP with industry giants such as Walmart (US$648 billion in revenue), Amazon (US$574 billion), Costco (US$242 billion), and Home Depot (US$152 billion). Tourism contributes 2.9% of GDP, welcoming 79 million international visitors in 2023, ranking third in the world after France and Spain. Las Vegas, Orlando, New York, and Los Angeles are the four leading destinations. Las Vegas casino revenue reached US$15.5 billion in 2024, the highest level in history.

Industrial sector

Although its share has declined, industry still plays a vital role in the United States economy, accounting for 17.9% of GDP and 8.5% of the workforce. Key sectors include oil and gas, automotive manufacturing, aircraft, chemicals, pharmaceuticals, and semiconductors.

Oil, gas, and energy

The United States has been the world’s largest crude oil producer since 2018, with an output of 13.2 million barrels per day in 2024, surpassing Saudi Arabia and Russia. The shale revolution in the early 2010s, driven by fracking and horizontal drilling technology, transformed the nation from the largest importer into a net energy exporter. The total market capitalisation of oil and gas companies ExxonMobil, Chevron, and ConocoPhillips exceeds US$1 trillion. It was the world’s leading exporter of LNG (liquefied natural gas) in 2024, with 11.9 billion cubic feet per day.

Automotive and aviation

The automotive industry is concentrated in Detroit and Michigan (the Big Three: General Motors, Ford, and Stellantis), Texas (Tesla Gigafactory), and Tennessee and South Carolina (BMW, Volkswagen, and Mercedes-Benz). Production in 2024 reached 10.6 million vehicles – ranking fourth in the world after China, Japan, and India. Tesla is the world’s largest electric vehicle manufacturer with a market capitalisation of US$1 trillion. In aviation, Boeing (Seattle) is one of the two largest aircraft manufacturers in the world alongside Airbus.

Semiconductors and pharmaceuticals

The semiconductor industry is undergoing significant restructuring through the 2022 CHIPS Act, which provides US$52.7 billion in subsidies. Intel, AMD, Nvidia, and Qualcomm are the four largest chip design companies; TSMC is currently building a US$40 billion plant in Arizona. The pharmaceutical sector includes Johnson & Johnson, Pfizer, Eli Lilly, and Merck – which produce the majority of the world’s breakthrough drugs. Pharmaceutical industry revenue reached US$700 billion in 2024, ranking first in the world.

Agricultural sector

Although it accounts for only 1.1% of GDP and 1.4% of the workforce, the US agricultural sector remains the world’s leading exporter of agricultural products, with US$170 billion in 2024. Productivity is 10 times higher than in Vietnam due to mechanisation, biotechnology, and large-scale operations.

Key agricultural products

The United States leads the world in soybean production (118 million tonnes in 2024) and corn (385 million tonnes). The Corn Belt, comprising Iowa, Illinois, Nebraska, Minnesota, and Indiana, produces 85% of the nation’s corn and soybeans. Wheat production is 49 million tonnes – ranking in the top four globally – and is concentrated in Kansas, North Dakota, and Montana. Beef production is the highest in the world (12.9 million tonnes in 2024), centred in Texas, Nebraska, and Kansas. Dairy production ranks second after India with 102 million tonnes.

Agricultural exports

China is the largest market for agricultural products, with US$27 billion in 2024 (soybeans, corn, pork), followed by Mexico (US$28 billion), Canada (US$25 billion), Japan (US$12 billion), and the EU (US$11 billion). Vietnam imported approximately US$4 billion of US agricultural products in 2024, primarily soybeans, corn, cotton, and round logs – an increase of 30% compared to 2023. This is a significant component of the bilateral trade balance between Vietnam and the US.

The US dollar and its global role

A key factor in the economic strength of the United States is the status of the US dollar (USD) as the world’s primary reserve currency, which provides what economists call an “exorbitant privilege.”

USD in global foreign exchange reserves

According to IMF COFER data for Q3 2024, the USD accounts for 57.4% of global foreign exchange reserves, nearly three times that of the euro (20%), 11 times that of the Japanese yen (5.8%), and 12 times that of the British pound (4.9%). Although its share has declined from 70% in 2000 as countries diversify their reserves, the status of the USD remains dominant. Approximately 88% of global foreign exchange transactions involve the USD, according to the BIS Triennial Survey.

The Petrodollar system

Since 1974, following the US-Saudi Arabia Treaty, global oil has been primarily priced and settled in USD – creating the “petrodollar” system. This compels oil-importing countries to accumulate USD, reinforcing demand for the currency. Although China and Russia are pushing for oil payments in yuan and roubles, the USD still accounts for over 80% of global oil transactions.

Debt advantage and fiscal strength

The reserve currency status allows the United States to borrow at lower interest rates than other countries. US Treasury bonds are considered the safest assets in the world and are held by central banks and investment funds everywhere. Total US public debt reached US$35 trillion in 2024, equivalent to 120% of GDP – the highest in peacetime history. However, interest costs remain low (3-4%) because demand for bonds remains high.

The labour market

The labour market is a key indicator reflecting the health of the US economy. According to the Bureau of Labor Statistics (BLS), the total labour force reached 168 million people in 2024, with a participation rate of 62.5%.

Average income and wages

The median household income in 2023 was US$80,610 according to the Census Bureau. The average hourly wage (full-time, non-supervisory) reached US$30.57 in December 2024. Some of the highest-paying professions include surgeons at US$380,000 per year, software developers at US$152,000, lawyers at US$145,000, and civil engineers at US$105,000. The federal minimum wage is US$7.25 per hour (unchanged since 2009), but many states have higher rates, such as California at US$16 per hour and New York at US$16.50 per hour.

Unemployment rate

The unemployment rate in December 2024 was 4.1%, near a historic low. Over the past 50 years, the highest level was 14.7% in April 2020 due to the COVID-19 pandemic, and the lowest was 3.5% in 2019-2020. The post-COVID labour market saw the “Great Resignation” phenomenon, with millions of Americans quitting their jobs to find new ones, driving up wages and creating inflationary pressure. To better understand the social organisation related to labour and healthcare, see the article United States healthcare sector.

Trade relations with Vietnam

Vietnam and the United States have a special trade relationship that has developed rapidly over the past 30 years. This is a clear achievement of the normalisation of relations in 1995 and the upgrade to a comprehensive strategic partnership in September 2023.

Bilateral trade turnover

According to the Office of the United States Trade Representative (USTR), bilateral trade in goods and services reached US$155.1 billion in 2024 – an increase of 20.5% compared to 2023. Of this, Vietnam exported US$136.6 billion to the United States and imported US$13.1 billion, creating a trade surplus of US$123.5 billion. Vietnam is the eighth-largest trading partner of the United States and the market with the third-largest trade surplus (after China and Mexico).

Structure of import and export goods

Vietnam’s primary exports to the United States include: electronics and components (US$40 billion), textiles and garments (US$16 billion), footwear (US$10 billion), wood and wood products (US$9 billion), agricultural products (US$3.5 billion), and seafood (US$1.8 billion). Vietnam imports from the United States: Boeing aircraft and components (US$2.5 billion), soybeans (US$1.5 billion), tobacco (US$700 million), and medicines, pharmaceuticals, and technology. US FDI in Vietnam reached US$11.8 billion cumulatively by 2024, ranking 11th among investing countries.

Opportunities for Vietnamese investors

The strength of the US economy provides a solid foundation for programmes. residency by investment in the United StatesVietnamese investors through the EB-5 programme investing in US projects often choose states with high economic growth and large Vietnamese populations, such as California (Bay Area, Orange County), Texas (Houston, Austin), and Florida (Orlando). An investment of US$800,000 in a TEA project in these regions has the potential for job creation and higher returns than in less developed states. U.S. International Relations continues to be a key factor shaping the investment market.