The United States is outpacing many advanced economies in growth and productivity.
WASHINGTON—The U.S. economy grew faster than many predicted over the past year, outpacing other advanced economies, especially in Europe, where growth has nearly stalled.
Analysts say President Donald Trump’s pro-growth policies, combined with a surge in investment in artificial intelligence, have further strengthened the country’s economic momentum.
The United States is “at the doorstep of a new industrial revolution,” said Stoyan Panayotov, a financial adviser and founder of Babylon Wealth Management.
He said the country’s strong capital base, skilled workforce, and shareholder-friendly environment make it more attractive to investors than other markets.
Recently, S&P 500 companies have reported earnings that beat market expectations. More than 70 percent of companies recorded positive earnings surprises in the fourth quarter of 2025, according to FactSet data.
On Feb. 6, the Dow Jones Industrial Average surpassed 50,000 for the first time—after the S&P hit 7,000 on Jan. 28.
During his State of the Union address on Feb. 24, Trump credited these milestones to his economic policies, particularly tariffs.
In a Truth Social post on Feb. 6, the president also made a bold prediction: “I am predicting 100,000 on the Dow by the end of my term. Remember, Trump was right about everything!”
Strong corporate earnings, technological innovation, and a positive economic outlook all have contributed to the U.S. stock market’s appeal.
Despite the recent market volatility, entrepreneur and investor Kevin O’Leary believes the United States remains the “most trusted” investment hub for global investors.
“You’ve got to realize, 52 cents of every dollar created on earth is invested in the American stock market,” O’Leary told The Epoch Times on Jan. 28 during a summit about “Trump Accounts” for newborns.
“It’s the most liquid and most successful economy on earth,” the “Shark Tank” star said. “It provides consistent returns.”
On Independence Day last year, Trump signed the One Big Beautiful Bill Act into law, which included pro-business measures aimed at boosting capital spending and encouraging the onshoring of factories.
Among its provisions was the permanent restoration of 100 percent bonus depreciation for qualified assets. The policy allows businesses to immediately deduct the full cost of new factories, factory improvements, capital investments such as machinery and equipment, and software, as well as domestic research and development. Many companies are leveraging bonus depreciation to reduce tax liability and reinvest in growth.
The manufacturing footprint is expanding, and the AI boom is increasing demand for energy, data centers, and commodities. Despite concerns about an AI bubble, U.S. technology giants Alphabet, Amazon, Meta, and Microsoft plan to invest collectively about $650 billion in 2026, mainly to expand their AI infrastructure.
These trends are driving renewed investor optimism, according to Panayotov.
By Emel Akan
