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Insight 23.10.2018

US vs Europe: 3-1

US vs Europe: 3-1

Many people are wondering whose economy and financial markets will perform the best in the next 12 months – Europe’s or the US’s. Let’s explore the current and potential performances of both economies to see who is in the lead.



Key Points

  • The recent economic momentum is definitely in favour of the US economy: business and consumer confidence have both reached news highs in the US, while the same indicators have stayed sluggish and even declined in Europe.
  • The economic outlook continues to look brighter in the US: growth prospects for next year are around 2.5% in the US after 2.8 to 3% in 2018.
  • The US is likely to use its economic policy further to maintain the positive momentum, and may boost infrastructure spending and apply new fiscal measures.
  • For Europe, the projections give a limited budget deficit and point to some moderation in public debt.
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