U.S. economic growth exceeds expectations.

The U.S. economy performed stronger than expected, but the U.K. and Germany were still sluggish. The IMF raised the U.S. economic growth from the original forecast of 1.5% to 2.1%. The growth rates of the Eurozone and Japan were 0.9%, and the U.K. was only 0.6%.

Experts believe that the strong economic growth performance of the United States comes from a combination of luck and judgment. The possible factors are summarized as follows:

1. Household living expenses in various states in the United States accumulated a lot of savings during the epidemic
2. The United States provided one-time relief to the unemployed and expanded unemployment insurance during the coronavirus crisis, while European countries did not lay off employees and provided employees with salary to keep their jobs. Because of this, Americans have enough time to look for better jobs due to unemployment, which has prompted the United States to current strong productivity growth
3. Geopolitical impact, Europe gets more impact of the Russia-Ukraine war than the United States. The war has driven up the price of natural gas and daily necessities, disrupting the business environment. Now households are unable to purchase other non-necessities. The 2023 European Investment Bank report shows that 68% of European companies are facing Energy prices have increased by 25%, but only 30% of companies in the United States face this problem. In addition, the recent Red Sea crisis has impacted the supply chain, and Europe has been more affected than the United States.
4. The average median age in the United States is about 38.5 years old, that in Germany is 46.7 years old, and that in Japan is 49.5 years old. The U.S. economy has relatively benefited from the younger population.