Economic Resiliency Post Pandemic: U.S. vs. the EU
While the U.S. has its economic problems, the runaway government debt being an ominous example, its unending reliance on domestic spending for domestic prosperity is a winning recipe over time.
While the U.S. has its economic problems, the runaway government debt being an ominous example, its unending reliance on domestic spending for domestic prosperity is a winning recipe over time.
In its press release, the ECB reports that bank credit to euro-area residents grew at 5.9% in March.
At 3.0%, Sweden ranked lowest in year-to-year GDP growth; Germany came in second from the bottom at 3.7%
On an annual basis, three countries exceeded 50% producer-price inflation: Ireland (63.4%), Romania (57.7%), and Denmark (53.8%). At 6.2%, Malta had the lowest in
European inflation is now at U.S. levels and all euro-zone member states except Malta now have annual inflation rates above 5%.
The actual employment rates for young workers varies drastically across the EU. On average, the 27 member-state European Union had a 73.6% employment rate for the young workforce. The euro zone averaged 73.1%.
Rather than sinking further into debt to maintain current, high levels of government spending, it is time for Europe’s leaders to fundamentally reconsider their economic and social policies. It is time for them to adopt an entirely new program for economic prosperity.
Any major monetary expansion causes inflation. This past year, a combination of domestic restrictions on economic activity, speculation in the headwind of uncertainty, and the overall nature of energy markets, created inflationary pressure where under normal economic circumstances none would have existed.
Reflecting concerns for continued high inflation, a survey of professional forecasters published by the ECB showed a considerable 1.1 percentage-point rise in expected euro-zone inflation for the first quarter of 2022.
Despite the strong growth rates in the 4th quarter, the European economy has only barely recovered from the pandemic.
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