The national brand of the USA has dropped dramatically since April 2011 in the wake of a combination of serious economic problems.

It is estimated that the reputation of the world’s largest economy has declined in value by $1.2 trillion as low consumer spending, a static property market, and the sovereign debt credit downgrade hit ‘Brand USA’.

The USA’s brand has been reviewed by Brand Finance plc since the publication of its Brand Finance Nations Brand Index in May 2011 due to the economic turmoil on the US stage. Whereas in May ‘Brand USA’ was given a rating of AA and its value estimated at $12.5 trillion, it has now slumped to AA- and $11.4 trillion – a ten year low.

The US brand at the new valuation would still be worth more than the next nearest nation – but the drop to an AA- rating puts it below Canada, Australia and South Korea in brand strength. The BRIC nations are all growing in strength, having moved up in the 2011 rankings from their 2010 positions, and China now has the second-most valuable national brand in the world.

David Haigh, CEO of Brand Finance plc, comments: ‘The economic crisis and double dip recession will accelerate the differences between ‘Brand USA’ and other developed and emerging nation brands, with further shifts likely in the near future.’