80% of GDP in the USA is due to services, which are the ones that generate the most?

80% of GDP in the USA is due to services, which are the ones that generate the most?

Table of content

Diversifying the US economy and opening up to foreign investment keep the world's largest economy going.

The United States is the richest and most robust economy in the world. According to the International Monetary Fund (IMF), it is estimated that the gross domestic product (GDP) of the USA by 2022 will be 25.3 billion dollars. Let's see that compared to the five world economic powers.

This is the ranking of the countries with the highest estimated GDP from 2021 to 2027 made by the IMF.

This statistic shows how the wealth of the American country continues to rise despite the economic crises caused by the pandemic and the war between Russia and Ukraine. This economic success is due in large part to the policies that are declared favorable to protectionism and the defense of what is American.

Another of the important indicators that allow an accurate reading of the wealth of the American giant is its capacity to receive foreign investment; no later than June 2022, according to the US Census Bureau, 410,348 organizations applied for the creation of companies throughout the federal republic, being Florida with 55,161 and California with 43,302 the States where most companies were created in that month

These small and medium-sized companies have great possibilities, for example, to contract with the federal government, according to macro data, public spending in the United States in 2020, grew by 21.47%, that is, a rise of 9.49 points compared to 2019.

This is important to know because the US government encourages, through 9 federal programs, that small businesses earn at least 23% of the annual federal contracting budget; an initiative that is executed by the Small Business Administration(SBA).

We made a summary of the requirements that you must take into account to apply to each of these programs: How to contract with the US government? 9 federal and state programs where you can apply.

Now, let's analyze how the GDP of the United States behaves, what are the industries that generate the most profits? According to an analysis from ICEX, “The United States is, like other developed economies, a service economy, since the tertiary sector represents 80% of GDP. The industrial sector represents 19% of GDP while the agricultural sector contributes only 0.9%”

Let’s see these indicators broken down:

Percentage added to Gross Domestic Product (GDP) in the United States in 2020, by industry (as a percentage of GDP)

Source: Percentage added to the Gross Domestic Product (GDP) in the United States in 2020

This diversification, and the start-up of new economies, has been maintained throughout the economic threshold that has been experienced in recent decades in the United States, thanks also to the purchasing power of its population, according to the US Census Bureau, it’s estimated that the Median Family Income of US families for 2020 was $64,994; only 8.7% had no health coverage in that year; and the employment rate was 59.6%.

To finish, let's see how the US government is facing and has suffered the blows of the economic crisis caused by the war in Ukraine. According to the US Bureau of Economic Analysis., “real gross product, primarily a measure of an industry's sales or income, which includes sales to the end users of the economy (GDP) and sales to other industries (intermediate inputs), increased by 2.0% in the first quarter of 2022”, however, the report adds, “private industries, producing goods, decreased 6.9%, private industries producing services another 0.8% and the government increased 2.0%” .

Contributions to the percentage change in real GDP by industry group in the first three months of the year 2022.

Source: GDP by industry US Bureau of Economic Analysis (BEA)

Diego Prieto
Press Officer

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