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USA: The Giant's Comeback

01.03.2015 12:15:05

Considering that even a relatively low oil prize doesn’t improve the current global economic situation, we finally see a growth indicator that never failed to deliver. Due to decreasing unemployment figures in the US, consumer spending will rise in the No 1 domestic market globally: Wages increase and so does the purchasing power of the average American. Thus, the USA remains the sole warrantor for stability among the traditionally leading industrial nations. German companies looking to expand in a safe investment environment should further investigate the US-market.

USA now



The current employment market in the States has not seen a boom as good since 1994. Since 12 months 200,000 new jobs have been filled respectively. In 2014, the unemployment figure decreased for a full percentage point – that is the strongest drop since 1984. Taking the concurrent reduction of the fiscal deficit into consideration, the Titans Comeback is no understatement. But there are more positive developments. For example taking ‘Reshoring’: ‘Made in USA’ is making an impressive comeback as well. After decades of outsourcing production facilities to developing countries, more and more companies establish fabrication plants in the States again. Especially the South-East is downright re-industrializing. Many German owned factories were implemented here which further strengthens the ongoing developments.


Comparing the USA with other markets



The global economic status is still inconclusive. Japan and Europe are stagnating. Russia is shrinking and Chinas growth is not what is used to be. The superpower USA joins many emerging nations, which present decent growth figures. Despite having already established structural, political, and in relation to developing economies, ecological stability, the US is leading the way for the industrial nations. Reshoring, fracking, Web 2.0 combined with new terminal devices and Shared Economy. The economic growth rests on many pillars. Different success stories emphasize an anti-fragile overall situation, which is especially appreciated in Germany. But the most important pillar might be the difference in consumer mentality. Americans save less in contrast to Europeans, particularly Germans.


Altogether, US infrastructure is functionally comparable to its European counterpart and dependable. Similar values and mutual cultural interference add to the factors that make up the appeal for German investors. But as always: the devil is in the detail. There are still many obstacles making professional assistance imperative.



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