The United States is a consumer-driven economy. Every year, thousands of people look forward to holidays like Black Friday, and retailers stock up on inventory for huge shopping events like the holiday season. As a result, the health of the U.S. economy depends on how much Americans spend, and the environment in 2024 will be very different than it was before the coronavirus pandemic.
Before the pandemic, it was relatively easy to get credit, and as a result, spending was as expected. However, in the immediate aftermath of COVID-19, spending in key areas such as accommodation changed in ways that few would have imagined in December 2019. According to a survey by banking giant JPMorgan Chase (NYSE: JPM), consumer spending on everyday items was significantly higher in the United States after lockdowns were implemented in March 2020. Spirits recorded higher interest, as did other products such as coffee and hand sanitiser. At the same time, work-from-home requirements changed the way people take personal care for work, reducing spending on items like cosmetics.
In 2024, analysts and economists are bracing for the same tensions they felt in mid-to-late 2022. This tension is also very important for personal consumption. In mid-April 2024, the stock market and the Federal Reserve will have to deal with inflation data that would have painted a different picture. The U.S. consumer price index rose 3.5% in April, also higher than expected, according to Labor Department data. As a result, stock prices plummeted and Fed Chairman Jerome Powell reiterated that it will take more time for higher interest rates to filter through the economy and sustainably control inflation.
Check out the 5 countries with the highest consumer spending in the world.
5. United Kingdom of Great Britain and Northern Ireland
Final consumption expenditure in 2022: $2.5 trillion
The United Kingdom is also a wealthy country in Europe. Although it has played an important role in world politics for centuries, the country’s status as a former suzerain and a major player in World War II means that it maintains an important role in modern international affairs. I was able to. The UK economy is worth $3.4 trillion and has recently considered the idea of cutting interest rates as inflation begins to ease.
4. Federal Republic of Germany
Final consumption expenditure in 2022: USD 2.9 trillion
Germany is Europe’s richest country and Europe’s largest economy. Manufacturing accounts for the majority of the country’s GDP, and the manufacturing industry struggled due to the impact of the invasion of Ukraine and the restructuring of Germany’s energy supply chain, which had become overly dependent on cheap Russian gas. The size of Germany’s economy is $4.5 trillion, with a per capita GDP of $54,291.
3. Japan
Final consumption expenditure in 2022: $3.2 trillion
Japan is a significant participant in the global economy and another global power. In addition, it is among the few countries in the world with the most advanced technological infrastructure and the ability to launch payloads into space. Although Japan has not yet launched crewed flights, recent remarks made by NASA Administrator Bill Nelson suggest that Japan intends to forge a major alliance with the United States for lunar exploration as part of the agency’s Artemis program.
2. People’s Republic of China
Final consumption expenditure in 2022: $9.5 trillion
The People’s Republic of China, or simply China, is the world’s second most populous and nominally the second largest economy. Considering that China’s economy is worth a whopping $18.5 trillion, the fact that the country’s personal consumption spending has reached $9.5 trillion is not surprising. However, the stark difference between the two figures also indicates the level of government involvement in China’s economy, which is surprising given that key sectors such as engineering are often controlled by the government.
1. United States
Final consumption expenditure in 2022: $21 trillion
Topping the list of global consumer spending is the United States. The size of the American economy is the largest in the world at $28 trillion, and the economic structure of the United States is different from that of China, so personal consumption accounts for a large part of it.