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U.S. Impact on World Economic Growth - 3/23/16

Though the impact of the U.S. economy on driving global economic growth is higher than it was several years ago, it is still not as pronounced as it was two decades ago.  Data supplied by the World Bank indicate that America accounted for an estimated zero point six percentage points of the world’s two point four percent growth rate last year. 

That means that the U.S. was responsible for roughly a quarter of the world’s growth in twenty fifteen.  However, if one goes back to the late 1990s, America’s impact was even greater.  As indicated by writer David Harrison, in percentage terms, the U.S. contributed more than twenty eight percent of the world’s growth in nineteen ninety six, nearly 30 percent in nineteen ninety seven and an incredible forty seven percent in nineteen ninety eight when many Asian countries were dealing with financial crises. 

The days of that level of U.S. contribution to world growth are likely behind us.  Though China’s economy has slowed recently, in twenty thirteen, that nation single-handedly accounted for nearly a third of the world’s economic expansion. America’s contribution to global growth is expected to be less than sixteen percent in twenty eighteen.  China’s contribution is expected to be greater than twenty six percent.

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.