Minneapolis/London CNN — Not all pandemic recoveries are created equal. The world’s richest economies have taken diverging paths in recuperating from the devastating effects of Covid-19. At a time when multiple forces and crises — wars, geopolitical tensions, the pandemic’s lingering aftershocks, high inflation and steep borrowing costs — weigh on global growth, there have been few bright spots. The US economy is one of them. Gross domestic product in the United States grew at a remarkable 5.2% in the third quarter, ahead of China, long the engine of global growth. “The US has really outperformed relative to other countries for the past year,” Innes McFee, chief global economist for Oxford Economics, told CNN. The United States has powered ahead of the European Union, the United Kingdom, Japan, Canada and other advanced economies this year. Last month, the Paris-based Organisation for Economic Co-operation and Development became the latest intergovernmental body to upgrade its forecasts for US growth this year and next, while downgrading the outlook for the 20 countries that use the euro currency. That followed similar moves by the Washington-based International Monetary Fund in October . The IMF now expects US GDP to expand by 2.1% this year and 1.5% in 2024 — more than double the growth rates forecast for the UK economy and well ahead of the euro area, which is predicted to grow 0.7% this year and 1.2% next year. The US economy has widened its lead over Europe since the pandemic For most of the past two decades, growth in US GDP has surpassed growth in the United Kingdom and the eurozone . That trend has continued since the Covid-19 pandemic. GDP index 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 100 120 140 160 Note: The absolute level of GDP […]
Click here to visit source. Why the US economy has powered ahead of other rich nations