The US Economy Is Outpacing Its Peers

By: Anneken Tappe · February 05, 2024 · Reading Time: 2 minutes

Worries about the next recession have plagued wealthy nations for the past few years. But resilience and continued economic strength have put the U.S. ahead of the pack.

G7 in the Rearview

Since the end of 2019, U.S. GDP has surged by 7.4%, beating Canada, France, Germany, Italy, Japan, and the U.K. Of those countries, Canada and Italy’s economies performed the best, but at 3% to 4%, the U.S. economy still roughly doubled their growth. Among all eurozone countries, the combined GDP in the third quarter of 2023 was just 0.1%.

Meanwhile, in terms of inflation, the U.S. rate has fallen to 3.4%, while in countries like the U.K. and France, it remains above 4%.

Economic Exceptionalism

Much of the disparity between the U.S. economy and its G7 peers is down to you — the consumer. Consumer spending has been strong in America, holding up in the face of high inflation even as economists kept worrying how it could continue.

An early look at fourth quarter GDP growth — the broadest measure of economic activity — showed the U.S. economy grew at an annualized pace of 3.3%, handily surpassing expectations. The International Monetary Fund revised its global growth forecast, attributing the positive momentum to strong U.S. growth. The IMF sees the U.S. economy growing at a pace of 2.1% in 2024, more than double its forecast for other G7 nations.

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