Ross Clark Ross Clark

Why is the US economy doing better than ours?

The US entered recession earlier than the UK and Europe, and suffered its inflation surge earlier too, so it was always likely that its economy would recover earlier. But is the US emerging from recession while Europe and the UK are still plunging into theirs? That’s what today’s data from the Bureau of Economic Analysis suggests. Real US GDP grew in the third quarter of the year by 0.3 per cent, making for an annualised rate of 2.9 per cent. The figure was negative for the first two quarters of 2022, shrinking by an annualised rate of 0.6 per cent in the second quarter.

By contrast, the UK economy shrank by 0.2 per cent in the third quarter (quarter on quarter), and is up 2.4 per cent over the past year. Eurozone GDP rose by 0.8 per cent in the third quarter and is up 2.1 per cent over the past year.

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