he
underlying strength of the American economy is not in doubt. Despite
the gloom of the global
markets, the world’s richest nation can take comfort from the fact
that there are enough indicators to suggest that its ability to reverse
its economic slump should not be underestimated.
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| US
consumer spending rose in the last two quarters of 2002 |
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Several
areas of the US economy have suffered, particularly transportation and
manufacturing, but while airlines and a number of industries are going
through a difficult period, the outlook is not as negative as some analysts
suggest.
In the last three months of 2002 the US economy grew by 1.4 per cent.
This
fourth quarter growth was twice that predicted by the Department of
Commerce and followed on growth figures of 4 per cent in the third quarter
and 1.3 per cent in the second. Consumer spending in the last quarter
was also better than predicted, at 1.5 per cent, although lower than
the third quarter rise of 4.2 per cent.
Not
surprisingly, some states fare better than others. Louisiana, one of
the big four oil-producing states in the US, is diversifying its economy.
Considerable investment is going into hi-tech R&D, and the state
is one of the country’s most popular tourist destinations.
Louisiana’s
jazz and Mardi Gras festivals are among the best in the world. Another
of its hot attractions is Avery Island, home to the famous Tabasco sauce.
“Oil and gas activity in the Gulf of Mexico has a tremendous impact
on Louisiana,” says Jim Porter, president of the Louisiana Mid-Continent
Oil & Gas Association. More than 10,000 people work in the offshore
industry, generating around £3,1 billion for the state.
The
offshore industry is where future growth lies, he says. “Basically,
it is the last frontier available for this industry in the United States.”
Other states are also holding up well. One state alone – California
– is the world’s fifth largest economy. Lon Hatamiya, Secretary
of the California Technology, Trade and Commerce Agency, says: “California
may well become the fourth largest economy in the world.
“We
are a centre and gateway for US goods to the international marketplace.
We access the Pacific Rim markets, which leads to about 50 per cent
of our trade going to Asian nations, and we are also part of Latin America,
because we border on Mexico.”
California does have a great deal going for it, including one of the
best climates in the world. Quality of life has enticed a significant
number of Britain’s finest scientists, medical experts and researchers
to relocate there.
From
agriculture to the hi-tech industry, California has an unequalled reputation.
It also happens to be the most popular state for holidaymakers.
“There’s no economy in the world that is leading in so many
different sectors,” says Mr Hatamiya. “There’s no other
area that has invested more in R&D in both the education system
and in the private sector.”