STREAMING NOW: Watch Now

Why America's economy is so healthy

The Trump economy got off to a good start in 2017. And the president has a simple message: America is great on my wat...

Posted: Jan 27, 2018 3:14 PM
Updated: Jan 27, 2018 3:14 PM

The Trump economy got off to a good start in 2017. And the president has a simple message: America is great on my watch.

"The world is witnessing the resurgence of a strong and prosperous America," Trump said in front of world leaders, CEOs and the press at the World Economic Forum in Davos, Switzerland, Friday.

The U.S. economy grew 2.3% last year, according to figures released Friday. That's the best growth in two years.

Consumers, small business owners and CEOs are confident partly due to President Trump's agenda. He and congressional Republicans delivered a major tax cut for corporations and individuals, and some companies have promised bonuses or raises for employees as a result. Many more are hinting at bigger payments to shareholders. Some foreign companies, like Samsung, have also opened up new factories in the United States too.

But there's another undeniable force behind the strong American economy: the global economy's own resurgence. Its comeback last year helped boost at least two things Trump takes sole credit for: Jobs and stocks.

The global economy grew 3.7% last year, its fastest pace since 2010, according to new estimates from the IMF. One especially rare thing happened in 2017: Every major country or region grew, from China to Europe to Latin America to Japan.

Related: What Davos thought of Trump's speech

Europe's economy is firing on all cylinders. China's growth is stable. Japan is finally on the rebound. And Latin America's big players (excluding Venezuela) have emerged from recession.

A lot of U.S. companies sell their products in those markets. A healthier global economy lifted the profits of American companies. Higher sales and profits helped to boost U.S. stock markets to records last year.

But global growth matters to the American economy, especially for one sector Trump wants to expand: Manufacturing.

American exports rose 5.5% last year. That may not sound like much, but it's a major turnaround from an export decline in 2016. And manufacturing depends heavily on selling planes, cars, medical equipment and other goods around the world.

Related: Trump would consider 'substantially better' TPP

As exports rose, American factories added nearly 200,000 jobs last year. A year earlier, U.S. manufacturers were cutting jobs.

A key factor for manufacturing companies is the value of the U.S. dollar. A weaker dollar makes American products more affordable to foreign buyers. The dollar lost about 10% of its value last year.

Other currencies around the world became more valuable, after central banks pulled back stimulus and economies became healthier.

Meanwhile, economists, even at the IMF, anticipate that U.S. tax cuts will boost the economy this year -- but they won't be a long-term game changer. They predict growth will return to a ho-hum level slightly above 2% by 2019 or 2020. That expectation has dragged the dollar even lower.

Trump told CNBC Thursday he expects the dollar to get "stronger and stronger" in the future, alluding to the economy's gains under his watch. Since the start of the year, it's down 3.3% to its lowest level in three years. Again, economists point to other countries' economies catching up.

Economic growth in Year 2 of the Trump economy may even be better. The IMF predicts 2.7% growth in America. If it gets there, the rest of the world can take credit too. IMF officials see global growth rising again this year to 3.9%.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 307519

Reported Deaths: 7096
CountyCasesDeaths
DeSoto20772248
Hinds19888408
Harrison17489302
Rankin13311275
Jackson13097243
Madison9895210
Lee9856169
Jones8290160
Forrest7523146
Lauderdale7187237
Lowndes6262144
Lamar610584
Lafayette6027117
Washington5280132
Bolivar4769129
Oktibbeha455297
Panola4442103
Pearl River4419139
Warren4280118
Marshall4273100
Pontotoc416472
Monroe4057132
Union403675
Neshoba3987176
Lincoln3869108
Hancock372085
Leflore3468124
Sunflower329389
Tate322681
Pike3180104
Scott310572
Yazoo304368
Alcorn297764
Itawamba296776
Copiah292965
Coahoma289677
Simpson287484
Tippah284668
Prentiss275659
Marion265779
Wayne261341
Leake261073
Grenada254982
Covington254580
Adams245882
Newton244859
George237847
Winston225981
Tishomingo222067
Jasper219748
Attala213273
Chickasaw204857
Holmes186471
Clay182454
Stone179131
Clarke176876
Tallahatchie175240
Calhoun163230
Yalobusha158836
Smith158534
Walthall130543
Greene129433
Lawrence126223
Noxubee125933
Montgomery125542
Perry125138
Carroll120826
Amite120041
Webster113432
Jefferson Davis105432
Tunica102525
Claiborne101330
Benton97225
Kemper95226
Humphreys94332
Franklin81823
Quitman78916
Choctaw72817
Jefferson64828
Wilkinson64727
Sharkey49617
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 518899

Reported Deaths: 10712
CountyCasesDeaths
Jefferson753641487
Mobile37763798
Madison33859494
Tuscaloosa25266443
Montgomery23962565
Shelby23106238
Baldwin20631300
Lee15524165
Calhoun14284311
Morgan14139268
Etowah13662345
Marshall11957219
Houston10380278
Elmore9993200
Limestone9811147
Cullman9470188
St. Clair9426234
Lauderdale9215227
DeKalb8746181
Talladega8058171
Walker7087275
Jackson6754110
Autauga6723103
Blount6483135
Colbert6203130
Coffee5399112
Dale4767110
Russell428838
Franklin419982
Chilton4083109
Covington4053114
Tallapoosa3893146
Escambia387674
Dallas3527149
Chambers3499122
Clarke346360
Marion3065100
Pike305875
Lawrence295395
Winston272372
Bibb256258
Marengo248661
Geneva245875
Pickens232959
Barbour224755
Hale218775
Butler212266
Fayette208960
Henry187844
Cherokee182044
Randolph176941
Monroe171440
Washington164038
Macon154548
Clay149354
Crenshaw149257
Cleburne146041
Lamar139234
Lowndes136453
Wilcox124327
Bullock121340
Conecuh109028
Perry107926
Sumter102932
Coosa99228
Greene90734
Choctaw58724
Out of AL00
Unassigned00
Tupelo
Partly Cloudy
57° wxIcon
Hi: 85° Lo: 50°
Feels Like: 57°
Columbus
Clear
55° wxIcon
Hi: 86° Lo: 48°
Feels Like: 55°
Oxford
Partly Cloudy
50° wxIcon
Hi: 81° Lo: 48°
Feels Like: 50°
Starkville
Clear
48° wxIcon
Hi: 85° Lo: 47°
Feels Like: 48°
Clouds increase a bit more on Tuesday, though there will still be plenty of sunshine at times. Temperatures will remain very warm. An isolated sprinkle or shower is possible later in the day, though rain chances are much more likely into Wednesday as a cold front passes.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather