The US economy currently is in the recessionary phase as the disposable incomes for the public have significantly increased while there is an increased level of unemployment in the country. Similarly the growth in the economy has also slowed down considerably which is adding to the snowball effect leading to low levels of consumer spending and therefore economic growth.
The current balance of payments position of the United Statesis such that the country is facing both ups and downs. In the short term however theUnited Statesis reporting a deficit based position in its balance of payments. “This deficit was above 57 billion dollars in February 2007 which scaled up to 63.9 billion dollars in March’07 which has again decreased to $58.5 billion in April 2007. Trade deficit increases when import exceeds export and vice versa.” (‘American Economy Recent Trends’, 2008) Similarly when it comes to international institutions and international relations, the country is facing high level of competition form countries like India and China that are depicting high levels of economic growth despite the global recessionary environment.