The US economy continues to perform above average. Expected growth next year is three times the average for euro countries. But, reporter Eric Mouton says: “Americans are mainly concerned with expensive groceries.”
This week the International Monetary Fund (IMF) released its economic forecasts for next year. The US economy is expected to grow by 2.7 percent. India (6.8 percent) and China (4.6 percent) are performing well.
Expected growth in the Netherlands is much less rosy; It is 0.6 percent. This is slightly lower than the Eurozone average (0.8 percent).
Low unemployment
“The US economy is really running like a charm,” says US correspondent Eric Mouton. “There is plenty of work and unemployment has never been so low.” During Joe Biden's presidency, 15 million jobs were added.
His government has spent thousands of billions to stimulate the economy. This goes for infrastructure projects and greening of the economy. Billions are spent on subsidies to entice chip companies to come to America. “These are huge investments and they are paying off,” says Mouthan.
But while the European economy continues to falter after the Covid pandemic, the US – the world's largest economy – appears to have little trouble. The country also suffered from hyperinflation after the pandemic. with a peak of 9.1 percent In 2022. But now it has come down to 3.5 percent due to several interest rate hikes by the US Federal Reserve.
Mouton: “Joe Biden says every country is jealous of the American economy. But what does that mean for Americans? They're mainly worried about expensive groceries, high rents and high debt.”
American elections
US elections are held in November. Which candidate benefits from a good economy? Both Donald Trump and Joe Biden interpret it to suit their needs, Mouton observes.
For example, Trump boasts that unemployment was low during his presidency and prices were very low at the same time. “And Biden says he actually got inflation back under control.”
IMF warns An 'overheating' of the US economy. This happens during rapid economic growth, for example due to large government spending, which can increase inflation and cause prices to rise further. US Treasury Secretary Yellen aims to reduce the current inflation rate of 3.5 percent below 3 percent.
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