Ghulam Murtaza
The United States, renowned for its resilient economic fundamentals and promising investment opportunities, has faced significant challenges recently due to the COVID-19 pandemic and geopolitical tensions, notably the conflict in Ukraine. The pandemic has left many countries in economic uncertainty, and some have bounced back due to their robust systems and good governance. The American economy has demonstrated remarkable strength and stability, reaching a staggering trillion 29, largely due to effective policy responses to the crises and a strong political system. With a population of 335 million, the nation maintained a 3% GDP growth. It also attracted foreign direct investment (FDI) of $10.23 billion in Foreign Direct Investment (FDI) over 2021 and 2023. Factors contributing to the post-COVID-19 GDP growth include fiscal stimulus measures, pent-up consumer demand, and resilient business activity. Despite a trade gap of b$ 70.296, this discrepancy is minor in the context of the $2900 billion economy. Employment trends have also shown improvement, with a decline in unemployment rates, notably dropping from 8.05% in 2020 to 3.04% in 2023. Consumer spending patterns have also rebounded post-pandemic, evidenced by increased retail sales and consumption data, signaling economic resilience.The stock market has surged to 4831.2 points, reflecting potent investor confidence. Inflation rates, which stood at 7% in 2021, decreased to 3.2% in 2024. The American economy has remained steadfast despite geopolitical conflicts like the Ukraine war. Certain sectors, including defense, energy, and cybersecurity, have seen heightened investor interest amidst geopolitical tensions, presenting investment opportunities. Unfortunately, Pakistan is on the list of countries that are struggling post-Covide Erna. We must evaluate ourselves to know what led some nations to survive after wars and atomic and pandemic devastations.
The main pillars of any democratic state are the legislature, executive, judiciary, and Media; if they are strengthened, they can bear the weight of any uncertainty. The justice (legal and socio-economic) is impartial and finds its course; may the sky fall. The executive is known for leadership, the best human lot in any era. The media is a watchdog and whistle-blower. The legislative assemblies are an institute of leaders the masses choose from. The whole system stands on the eight principles of good governance. The United States is a good blend of all goods for the public, regardless of the cast, color, and creed (CCC). The simple reason is that they rule the world and a lesson for us to follow. The strength of the American economy can be attributed to several key factors, beginning with effective leadership and established institutional systems. Good governance forms the bedrock of any state, with strong institutions bolstering the economy’s stability. A robust legal system safeguards property rights, enforces contracts, and fosters fair competition, creating a conducive business environment that attracts investment and fuels economic growth. The United States has a rich history of nurturing innovation and entrepreneurship, evidenced by its leading technology companies, research institutions, and startups. This culture of innovation drives economic growth by fostering the creation of new products, services, and industries and enhancing efficiency and productivity across various sectors. Moreover, access to capital is facilitated by the nation’s deep and liquid financial markets, including stock exchanges, bond markets, and venture capital networks. A highly skilled and educated workforce, coupled with world-renowned universities and research institutions, ensures a continuous influx of talent across various fields, driving innovation, productivity, and competitiveness. Despite infrastructural challenges, the United States maintains a relatively well-developed infrastructure, including transportation networks, communication systems, and energy infrastructure, supporting economic activity and facilitating trade and commerce. As a global economic leader, the United States influences trade policies, financial regulations, and international relations, contributing to stability and confidence in global markets, further bolstering its economy. Environmental, social, and governance (ESG) considerations are increasingly shaping investment decisions, with sustainable investing gaining momentum among investors. Infrastructure investment catalyzes economic growth and job creation, offering opportunities for investors in sectors such as transportation and renewable energy. Overall, these factors contribute to the resilience and strength of the American economy, positioning it as one of the largest and most dynamic economies globally.
Despite the challenges posed by the COVID-19 pandemic and geopolitical tensions, the United States remains an attractive destination for investors, supported by its resilient economy, favorable market conditions, and effective policy responses. Data-driven analysis is crucial for evaluating investment opportunities, managing risks, and capitalizing on emerging trends in the post-pandemic and geopolitical landscape. While constraints on high growth may exist due to saturation points and diminishing returns, the United States continues to attract global business interests, fueled by its superior quality of life compared to China. Bridging the cultural gap between extroverted Chinese investors and comfort-seeking American investors may be achieved by Asian Americans, adept at navigating both cultural dynamics. The real challenge for America is that its private sector is introverted, and its mussels are less developed than the Chinese private sector, which can work in any hostile and freaky areas of the world, followed by maintaining a pace of economic and techno-growth to lead the world.
The author is the Secretary General of the Pakistan Association of Automotive Parts and Accessories Manufacturers and a freelance writer.
