Economists explain why they expect Europe to 'bounce back more sharply' than the U.S.
Jari Stehn, chief European economist at Goldman Sachs, told Bloomberg "it's pretty rare that the euro area would outgrow the U.S. over a horizon of one to two years," yet that's exactly what Stehn and other economists anticipate will happen as both economies try to emerge from the coronavirus pandemic.
JPMorgan Chase & Co. predicts the euro area's economy to shrink more than the U.S.'s this year — 6.4 percent to 5.1 percent, respectively — but, subsequently, the bank anticipates a 6.2 percent rebound for the Euro area, which is more than double the 2.8 percent growth expected for the U.S. That's because the euro area has "broken the link," meaning that mobility numbers are increasing, but the virus has not been resurgent. The success is largely the result of initially aggressive lockdowns followed by good contact tracing programs, mask-wearing, and continued social distancing measures as things open up, Bloomberg reports.
In the U.S., meanwhile, where the economy didn't ground to such an extreme halt, several states in the South and West have had to reimpose some lockdown measures as cases continue to spike, likely leading to a more prolonged recovery. Read more at Bloomberg. Tim O'Donnell
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
'Make legal immigration a more plausible option'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
LA-to-Las Vegas high-speed rail line breaks ground
Speed Read The railway will be ready as soon as 2028
By Peter Weber, The Week US Published
-
Israel's military intelligence chief resigns
Speed Read Maj. Gen. Aharon Haliva is the first leader to quit for failing to prevent the Hamas attack in October
By Justin Klawans, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published