The paper "PESTLE Analysis of the USA" is a great example of macro and microeconomics case study. With the rising competition in the global markets, it is critical that companies undertake market research and analysis before the venture. In this case, the analysis would focus on the United States. The US is the third most populous country globally and fourth by total area. Currently, the country has a population of more than 318 million with diversification in ethnic backgrounds and the largest economy in the world. Therefore, the country attracts a significant number of investors making competition so stiff that would be important for businesses to have a plan before investing.
After the 9/11 attack, the country economic growth slowed down and with the economic recession that occurred in 2009, the country’ s economy contracted significantly. Nonetheless, the country’ s economy is currently moving to the desired and steady direction with such changes attributed to the increment in business investment, expenditure of the consumers, and a substantial decline in unemployment. Political The United States enjoys a strong democratic setup and consequently the effective rule of law.
The two factors ensure fair and transparent elections. Moreover, the country enjoys massive influence associated with political and economic activities from the local and international policymaking process as it is recognized globally as a leading superpower (Markandya, Pedroso-Galinato, & World Bank, 2009). With all the political influences the country enjoys, it faces various criticism internationally owing to its interventionist policies on the ‘ War on Terror’ , which mostly sour the foreign relations and similarly fuelling the terror groups. As a result, the country increases the threat of terrorism. Economic Performance For a long period, the country has been enjoying stable economic performance until the occurrence of 9/11 attack and economic recession.
The country has a GDP of over $16.760 trillion making it the largest economy globally. Moreover, the U. S enjoys a stable economic system associated with properly developed industries and gathers much of the strength from its services and manufacturing industries. In 2009, the economic recession greatly affected the economic performance o0f the country and increased the rate of unemployment at an alarming rate. However, the country’ s economic performance bounced back registering a 4% growth in the third quarter of 2014 as both the consumers and business entities increase the spending.
The increasing budget deficit puts the country’ s economic success at great risk as it currently stands at a staggering level of $506 million. Despite the modest growth rate of the US since it ended its Great Recession, accommodation and employment rates have gained some tractions in the recent quarters. However, with increasing mortgage rates, low growth of quality jobs, and declined disposable income, there are concerns over the performance of the economy. The economy of the country has expanded with 3.9 percent in the first quarter within the three months to June 2015.
Compared to the previous growth of 3.7 percent, the growth is mainly attributed to increased consumer spending and construction activities. In relation to expenditures, personal consumption rate in the country accounts for 68 percent of the Gross Domestic Product (GDP) constituting both the goods and services standing at 23 percent and 45 percent respectively. According to the Commerce Department, both consumer spending and cheaper fuel prices are the major factors that contributed to the growth (Richardson, Pan, Park, & Moore, 2015).
The economy of the country entered 2015 on the stronger streak of consumer spending years. However, the released first growth figures of 2014 indicate inadequate vigor in the current expansion. Initially, many American drillers invested over the years expanding their investment; however, with such reductions, the country recorded a decline in investment by more than $25 billion in the first quarter. In the first three months, the country showed signs of weakness in its economy, which contributed, to the anticipation of low GDP growth for the first quarter by the market.