World’s Major Economies Fall Behind U.S.
The economies in the UK and Japan shrank at the end of last year, falling further behind the US. It has widened the gap in growth from the US to the rest of the world. The growth numbers from the UK and Japan mirror similarly weak conditions in much of Europe and China. The divergence between the US and the other wealthier countries or economies is majorly due to surprising US strength. The US economy grew much faster in 2023 than many had predicted. While Europe was hot with high energy prices from the Ukraine war and rising interest rates many predict that the gap will shrink but still have a wide spread.
US consumer spending has remained resilient in the face of rising interest rates more than the rest of the world. Also, US government spending has been at historical levels giving the economy an added boost. Many are resilient to label the UK and Japan economic slowdowns as full-blown recessions but some have already labeled them as such. We will have to wait to see for more data to come out to see if they are true recessions.
https://www.wsj.com/economy/global/u-k-enters-recession-after-economy-shrinks-more-than-expected-30407624?mod=economy_lead_pos5
christian wolter
6 comments:
I wonder what specific factors have lead to the resilience of the US economy outside of the consistent consumer and government spending. It will be interesting to see if this resistance to rising interest rates will have any repercussions in the future even though it seems to be what is giving the US much greater growth than other major nations.
I wonder what specific factors have affected the Japan economy so much? And do you think if the interest rate is affecting trade which in turn is affecting foreign economies.
What factors have caused the US to stay out of a recession? Are we due for another recession in the near future?
How significant is the widening gap in economic growth between the US and other major economies like the UK and Japan, and what factors contribute to this disparity?
What potential implications do you foresee for the global economic landscape as this gap in growth between the US and other major economies persists or potentially narrows in the future?
What factors do you think contributed to the strength of the US economy in 2023, particularly in contrast to the weaker performances of economies in the UK, Europe, and Japan?
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