united-states-of-america-market-insight.docx - UNITED STATES OF AMERICA Key facts and figures Population 325.9 million What\u2019s happening in this

united-states-of-america-market-insight.docx - UNITED...

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UNITED STATES OF AMERICA What’s happening in this economy The USA is the largest economy in the world. The current economic expansion is the second longest on record and is predicted to continue into 2018–19. Its unemployment rate is approaching historically low levels, with the current rate of 3.7 per cent the lowest since 1969. The USA is well known for its entrepreneurship and innovation, as well as high levels of R&D expenditure. It is a global leader in technology and high-value manufacturing sectors. 1 Innovation is a key driver of economic growth in the US. The Trump Administration's National Security Strategy (NSS) shows the clearest policy direction in innovation and technology to date. The NSS states that the US will nurture a healthy innovation economy, collaborate with allies and partners, improve STEM education, draw on an advanced technical workforce, and invest in early stage R&D. US R&D priority areas include autonomous technologies (cars and weapons), data science, encryption, gene editing, nanotechnologies, new materials, advanced computing technologies and AI. 2 Decisions by US firms on outward investment and international expansion will be influenced by the recent Tax Cuts and Jobs Act, which reduces the corporate tax rate from 35% to 21%. This decrease was a key part of the new tax framework with the goal of attracting and retaining investment. The R&D tax credit was maintained in the Trump Administration’s tax reform package of December 2017. Trade, investment, and commercial opportunities and activities There are more than 4,000 Australian parent companies in the US: this includes 1,500 individual entities and more than 3,000 individual points of presence major firms include Austal, BHP, Lendlease, Macquarie Group and Servcorp 1 United States Country Risk Report – Q3 2018 BMI Risk Reports; London, (Third Quarter 2018). 2 Note: This Insight is current at October 2018. Refer to Disclaimer on the final page. i Key facts and figures Population: 325.9 mil- lion GDP growth: 2.9% (2018) Predicted GDP growth for 2018–19: 2.4% GDP per capita: USD 62,152 (2018) Political system: con- stitutional federal re- public Two-way trade/key goods and services traded: AUD 68 billion Demographic trends Millennials are projected to outnumber Baby Boomers by 2019.
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