The decline of Brand USA

The economic crisis has taken its toll on Brand USA. According to the Brand Finance Nation Brand Index—an evaluation of nation brand value through a detailed analysis of economic data, perceptual market research data and infrastructure measures—the value of Brand USA dropped significantly by $1.2 trillion since April 2011.

Brand Finance explains the factors contributing to Brand USA’s decline:

• Inflation
• Cost of capital
• Reduced capital
• Higher unemployment
• Declining image abroad

Ollie Schmitz, Director of Nation Brand Valuation, Brand Finance plc comments:

“Prior to the recession, ‘Brand USA’ communicated strong and desirable values in everything from popular culture and entertainment to food and retailing brands. However, as a result of the current economic situation the brand strength has now dropped to its lowest score since tracking began in 2000. Once the global benchmark, emerging markets across the globe will now look to other nations to take the lead signalling exceptionally testing times for the ‘Brand USA’ in the future.”

From Brand Finance’s rating of AA- to Standard & Poor’s recent downgrade of US debt from AAA to AA+, are these signs of the beginning of the end?

Source: PR Newswire

(Photo: dcbprime)