The gross domestic product is growing faster in the U.S. than any other advanced economy because of its concentrated wealth of mentors, investors and innovators, the Financial Times reported Tuesday.
America's GDP has expanded 11.4% since 2019 and will grow an additional 2.8% by the end of 2024, the International Monetary Fund predicted. The U.S. economic growth is fueled by its wealth of research and development spending in technology-based companies coupled with a 30% growth in labor productivity since the 2008-09 financial crisis, according to the outlet. That figure is more than three times the pace in Europe and the United Kingdom.
Although the U.S is the envy of the world when it comes to risk-taking venture capitalists, the policies of President-elect Donald Trump have some industry experts skeptical that growth will continue.
"Trump's economic policies will tarnish U.S. technology exceptionalism," says Mark Zandi, chief economist of Moody's Analytics. "But he will not undermine it."
The U.S. accounted for 83% of venture capitalist funding in G7 countries over the past decade, according to the Financial Times. The U.S. stands in stark contrast to neighboring Canada, whose productivity has shrunk over 14 of the past 16 quarters.
Carolyn Rogers, senior deputy governor at the Bank of Canada, warned in March that weak productivity was an economic "emergency," adding that "over the past four decades, we [Canada] have actually slipped significantly compared with some other countries."
A large part of U.S. growth is because of its risk-taking, something that is the envy of entrepreneurs in Europe. Nicolò Mazzocchi, co-founder of Skillvue, an artificial intelligence-powered tool that aids companies in analyzing job applications, said the funding process in Europe is "extremely difficult," adding, "investors are very scared to be the first mover — it's the biggest challenge in the early stage."
Although some economists are anxious a second Trump administration will harm the economy through tariffs and the deportation of illegal immigrants, others are more secure.
"The U.S. has a whole ecosystem to promote innovation and its impact on the economy via productivity gains," said Samy Chaar, chief economist at the independent Swiss bank Lombard Odier. "There's a lot of ground to cover for the rest of the world."