The US Economic Structure

US Economic Geography. The US is the third largest country in the world, in terms of both land area and population. As the world’s largest economy, many of the world’s key financial and economic institutions reside within the US. The US is home to the world's largest stock exchange, the world's largest gold depository and reserves, and 139 of the world's 500 largest companies, which is almost twice that of any other country.

The US also has an abundance of natural resources. Apart from having the world’s largest proven reserves of coal, the US also possesses the 14th largest proven oil reserves and the 6th largest proven natural gas reserves. Other natural resources include copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, and timber.

US Population and Labour Force. America has the 3rd largest labour force in the world at 154.9 million people. The majority (37.3%) of the labour force’s occupations are managerial, professional or technical in nature. Further 24.2% hold sales or office jobs, 20.3% are in manufacturing, extraction, transportation and crafts, 0.7% are in farming, forestry or fishing, and 17.6% have jobs in other services.

US Industry Sectors. Agriculture and the industrial sector make up 1.2% and 19.1% of the US’s GDP respectively, but the US is not only the third largest agricultural producer in the world behind China and India, but is also the leading industrial power in the world.

Agriculture is a vital part of US economy and society. US agricultural products include wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products; fish; and forest products.

The industrial sector is highly diversified and technologically advanced; comprising of industries such as petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber and mining. The country remains the world's largest manufacturer, representing a fifth of the global manufacturing output. The US is also the world's third-largest producer of oil and second-largest producer of natural gas.

Finally, services constitute 79.7% of the US GDP. The US is home to the largest and most influential financial markets in the world including major stock and commodities exchanges like NASDAQ, NYSE, AMEX, CME, and PHLX.

US Economic Structure. The US is a market-oriented economy, where private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US firms are at or near the vanguard in technological advances, especially in computers and in medical, aerospace, and military equipment.

The key essence of US economic structure can be summarised by the interactions between the private, public and international sectors. As the leading economy in the world, fluctuations in the US economy have had a far-reaching impact on other economies throughout the globe.

Ever since the 1960s, the US economy has been primarily responsible for absorbing global savings. Despite the challenge from emerging economies, the US remains the most heavily invested-into country in the world. The US is still the largest investor in the world.