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.

Confirmed Cases: 95310

Reported Deaths: 2874
CountyConfirmedDeaths
Hinds7032159
DeSoto547759
Harrison380573
Jackson343069
Madison323386
Rankin322577
Lee265468
Jones245279
Forrest242571
Washington219772
Lafayette213739
Lauderdale2038125
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Oktibbeha176350
Lamar165534
Neshoba1556104
Panola145527
Lowndes144958
Sunflower143946
Warren138450
Leflore138381
Pontotoc124916
Pike122450
Monroe120768
Scott117126
Copiah116633
Coahoma114428
Holmes109558
Marshall108516
Lincoln107553
Grenada107236
Yazoo104630
Simpson101844
Union98824
Tate96237
Leake94638
Adams92637
Wayne88821
Pearl River87053
Marion84535
Prentiss83417
Covington81322
Itawamba78721
Alcorn78611
Newton76723
Tallahatchie76421
George75913
Winston73519
Chickasaw66724
Tishomingo66738
Tippah65417
Attala65325
Walthall59525
Clay58518
Hancock57221
Clarke57045
Jasper56215
Noxubee54616
Smith52914
Calhoun50812
Tunica48213
Claiborne45916
Montgomery45820
Lawrence42912
Yalobusha42314
Perry41618
Humphreys37515
Quitman3735
Stone36512
Greene35917
Jefferson Davis33511
Webster33313
Amite32110
Carroll31412
Wilkinson30218
Kemper28815
Sharkey26513
Jefferson2449
Benton2232
Franklin1923
Choctaw1816
Issaquena1043
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Alabama Coronavirus Cases

Confirmed Cases: 133433

Reported Deaths: 2349
CountyConfirmedDeaths
Jefferson19306349
Mobile13233291
Montgomery8748177
Madison770978
Tuscaloosa7418116
Lee579261
Shelby578750
Baldwin514149
Marshall389244
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Morgan323926
Houston276423
Elmore259647
DeKalb237519
St. Clair226337
Walker225383
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Limestone203319
Cullman186818
Dallas175926
Franklin175229
Russell17322
Autauga171525
Lauderdale167333
Colbert162926
Blount158015
Escambia157725
Jackson154011
Chilton152431
Dale134644
Covington133427
Coffee12988
Pike11799
Chambers114442
Tallapoosa113885
Clarke107017
Marion95429
Butler91139
Barbour8517
Winston71812
Marengo70519
Lowndes65227
Pickens64514
Bibb63810
Randolph62713
Hale61928
Lawrence60522
Bullock59714
Geneva5864
Cherokee58315
Monroe5808
Clay5547
Washington55113
Perry5396
Conecuh53011
Wilcox53011
Crenshaw52732
Henry4835
Macon47920
Fayette4358
Sumter43219
Lamar3572
Choctaw34412
Cleburne3356
Greene30315
Coosa1673
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