If there’s one good thing that’s come out of the European debt crisis it’s that the U.S. has been able to shield itself from much of the mess.
The sentiment will continue in 2012 as the U.S. economy is expected to grow faster than its European counterparts.
That’s according to the Organization for Economic Cooperation and Development which says the U.S. economy will expand at a 2.9% annual rate in the first quarter and then a 2.8% rate in the second quarter.
Compare that with an over growth rate forecast of 1.9% for the Group of Seven nations.
“Our forecast for the first half of 2012 points to robust growth in the United States and Canada, but much weaker activity in Europe, where the outlook remains fragile,” says the think tank’s chief economist Pier Carlo Padoan “We may have stepped back from the edge of the cliff, but there’s still no room for complacency.”
What’s got the U.S. juices flowing? All the key recovery ingredients: the ongoing rebound in employment, stronger consumer confidence, higher equity prices and credit growth are underpinning the recovery, the group says.
The same can’t be said across the way in Europe where “weak consumer confidence, climbing unemployment and tight credit all point to further falls in activity.”
The OECD says Europe’s three largest economies–Germany, France and Italy–will shrink by 0.4% on average in the first quarter followed by a 0.9% growth recovery in the second.
Not even Germany can keep pace with the U.S. The superpower is expected to accelerate through the first half of the year, with growth of 0.1% in the first quarter and 1.5% in the second.
The Japanese economy meanwhile is expected to be kicking this year, especially in the first quarter. The OECD says growth in Japan is projected to rebound strongly in the first quarter to 3.4% before easing to 1.4% in the second quarter.
But all these growth projections can be easily disrupted by several factors including “rising oil prices, weakening activity in emerging market economies, notably China, and a slowdown in world trade growth that reflects weakening global demand.”
forbes.com
The sentiment will continue in 2012 as the U.S. economy is expected to grow faster than its European counterparts.
That’s according to the Organization for Economic Cooperation and Development which says the U.S. economy will expand at a 2.9% annual rate in the first quarter and then a 2.8% rate in the second quarter.
Compare that with an over growth rate forecast of 1.9% for the Group of Seven nations.
“Our forecast for the first half of 2012 points to robust growth in the United States and Canada, but much weaker activity in Europe, where the outlook remains fragile,” says the think tank’s chief economist Pier Carlo Padoan “We may have stepped back from the edge of the cliff, but there’s still no room for complacency.”
What’s got the U.S. juices flowing? All the key recovery ingredients: the ongoing rebound in employment, stronger consumer confidence, higher equity prices and credit growth are underpinning the recovery, the group says.
The same can’t be said across the way in Europe where “weak consumer confidence, climbing unemployment and tight credit all point to further falls in activity.”
The OECD says Europe’s three largest economies–Germany, France and Italy–will shrink by 0.4% on average in the first quarter followed by a 0.9% growth recovery in the second.
Not even Germany can keep pace with the U.S. The superpower is expected to accelerate through the first half of the year, with growth of 0.1% in the first quarter and 1.5% in the second.
The Japanese economy meanwhile is expected to be kicking this year, especially in the first quarter. The OECD says growth in Japan is projected to rebound strongly in the first quarter to 3.4% before easing to 1.4% in the second quarter.
But all these growth projections can be easily disrupted by several factors including “rising oil prices, weakening activity in emerging market economies, notably China, and a slowdown in world trade growth that reflects weakening global demand.”
forbes.com
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