Growth: Europe vs. America – The Great Economic Comparison
Europe has lost momentum, it is often said. In fact, the US is growing more dynamically. But does the view of bare economic figures obscure the true strengths of the EU?
The United States is widening its economic lead over Europe, with America's GDP growing to over $31 trillion from $10.3 trillion in 2000, while Europe's grew to $21 trillion from $7.3 trillion. The US has a higher productivity growth rate, with a 1.7% increase between 2000 and 2024, compared to 1.2% in the EU. Experts, including Harm Bandholz and the International Monetary Fund, cite factors such as the US's faster adoption of Artificial Intelligence, lower regulatory barriers, and a more integrated economy.
However, some economists, like Paul Krugman, dispute the narrative that Europe is falling behind, pointing to alternative measures of productivity.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
