The US economy is the largest on a global scale, and US GDP exceeded $18.5 trillion in 2016. It must be said that a significant part of the country's economic opportunities can be attributed to innovation, high technology and manufacturing, which, as a rule, are clustered in urban areas. 80% of Americans live in cities - and just the 10 largest metropolitan areas generate 34% of the country's total GDP.
New York's place in the US economy
New York's GDP is the third largest in the United States economy, trailing only Texas and California. The state's economy is so large that it could be the fifteenth largest economy in the world if it were a separate country.
At the same time, the city confidently holds the first position among US metropolitan areas in terms of GDP, which in 2016 amounted to $1.48 trillion.
Impressively, New York's GDP is higher than most of the world. These include Russia, Australia, Mexico and Spain.
New York GDP structure
Butin order. In the structure of New York's GDP, the main sectors are:
1. Financial services.
The financial services sector is synonymous with Wall Street, which is located in Manhattan. The New York Stock Exchange (NYSE), founded in 1817, is the most influential stock exchange in the world. This sector is not the leading one in New York in terms of the total number of employees employed, but is obviously the most influential. It is also one of the most potentially profitable. Financial professionals earn, on average, four times the average city dweller.
2. He althcare.
New York has about 20 million people, which means that the demand for medical services is very high. The Department of Labor reports that the He alth and Social Care industry has more employees than any other. Moreover, the Department of Labor expects high employment growth in this sector.
However, unlike in financial services, the average salary for medical professionals in New York is below the national average. And while many of New York's major medical establishments have made substantial profits since the passage of the Affordability Act in 2010, the industry hasn't shown the same impact on the state's economy as Wall Street. The growth of the he althcare industry in the metropolitan area is fueled by programs such as PILOT He alth Tech NYC, Community He alth Clinic Expansion Program, and Bio & He alth Tech Entrepreneurship Lab NYC, among others.
3. Professional and technical services.
As of 2015, an estimated 647,800 New Yorkers worked in professional and technical services. This broad field includes a large number of different professional groups such as lawyers, accountants, mechanics, marketers, and others that share similar characteristics.
These are professionals who make everyday life possible for individuals and businesses, and who are primarily in support roles in other, more visible sectors. For this reason, this group of occupations is very sensitive to economic cycles. Unlike, for example, financial services.
According to research by the Department of Labor, the professional, scientific and technical services group is the only significant industry that displays all of the following positive trends: above average growth rate; wage growth rates are higher than average; and the average weekly wage is above the state average.
4. Retail.
Retail also includes a large number of sub-industries such as:
- Food trade.
- Retail clothing.
- Retail sale of electronics and accessories.
- Auto sales.
- Other.
As in finance and manufacturing, New York retailers and their marketing consultants are the nation's top trendsetters.
According to the New York State Retail Council, more than 75,000 New York retailers havemore than 800,000 employees. Many of these jobs are spread across much of the New York area, especially in Manhattan and Jefferson County.
This is another cyclical industry that tends to be hit hard during economic downturns, although some sectors, such as the food trade, don't fluctuate much.
5. Production.
New York exports a wide variety of manufactured goods to other countries. Thus, the manufacturing sector is a leader in the production of rolling stock for railroads, clothing, since the city is the capital of fashion in the United States, elevators, glass and many other products.
New York's 2017 GDP Growth
As for last year? New York's GDP continued to grow in 2017. A new quarterly report showed that economic growth was 3.3% in the second quarter of this year - more than double that of the same quarter last year. Record jobs noted, rising VC investment and leading economic areas pointing to growth.
Economic growth in the second quarter of 2017 was more than double that of the first quarter of 2016.
The city's economy outperformed the national economy this quarter, growing 3.3% from 2.6% nationwide.
The growth in the number of jobs continues.
The number of employed city residents reached a record high of 4.1 million in the second quarter of 2017 - an increase of 87,200 compared to the firstquarter, and the biggest quarterly increase since 1985.
The average hourly earnings of all private sector workers in New York rose 4.8% year-over-year to $35.10.
Growth dynamics
In the 5 years ended 2016, the metropolitan area's economy grew in real terms by 6.77% at a compound annual growth rate of 1.32% per annum. New York's real GDP is $1.43 trillion. In 2016, it is at its highest level recorded to date.
Russia and New York
Consider the GDP of Russia and New York. The Russian economy is only a small part of the United States' GDP. Russia's GDP in 2016 was about $1.3 trillion. This is approximately 7% of the GDP of the United States ($18.5 trillion). Also, Russia's GDP is less than New York's, the difference is more than $150 billion.
Structure of Russian GDP
Russia is a major producer and exporter of oil and natural gas, and its economy is largely dependent on the export of energy sources. Russia's economic growth is driven by energy exports. Oil and natural gas revenues accounted for 50% of Russia's federal budget revenues and 68% of total exports in 2013.
Growth outlook
According to all economic analysts, New York's GDP will continue its strong growth. And by 2020 it will reach $1.76 trillion.
