U.S. Loses Ground In Domination Of Global Services Economy
Growth in the U.S. domination of the global services economy has stagnated, according to The Wall Street Journal.
The past 50 years have brought prosperity to the U.S. as it has cemented itself at the top of the global services economy. From 2003-2015, the U.S. trade surplus in medical care, higher education, royalties, and payments grew to $263.3 billion, almost 6 times greater.
Since those years of prosperity, growth has stagnated. Exports have barely grown in 2019, while imports grew 5.5 percent. The services surplus was down 10 percent from the year prior and is headed for the largest annual decline since 2003.
“It goes to the heart of what the U.S. is really good at,” said Michael Pearce, an economist at Capital Economics. “These are all areas in which the U.S. is a world leader, and it’s also what drives more fundamental, supply-side growth in the economy.”
The United States has seen a decline in its share of the global services economy over the past few years.