The US economy’s lead over that of Europe, a trend first evident in the aftermath of the global financial crisis and cemented during the coronavirus pandemic, is set to last into 2024 and beyond.
The IMF last week became the latest economics organisation to declare that the US economy would power ahead, forecasting an expansion of 1.5 per cent next year. This compares with IMF forecasts of 1.2 per cent for the eurozone and 0.6 per cent for the UK.
But what explains the persistent divergence between two of the world’s richest regions, in which the US has grown at roughly double the pace of the eurozone and the UK over the past two decades?
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