US economy: a stronger and faster rebound than at home

One year after the shock of the covid, the American economy is picking up again on the hats of the wheel, a stronger and faster rebound than at home.

The US central bank on Wednesday evening delivered its forecasts for the world's largest economy this year.

Forecasts that make you want: growth "Chinese" of 6.5%, while three months ago the Federal Reserve predicted a much lower rebound.

And an unemployment rate reduced to 4.5% by the end of the year.

In short, the United States will have quickly erased the effect of the Covid crisis, thanks it is true to massive stimulus plans, much more massive than in Europe.

And that will widen the growth gaps between the two shores of the Atlantic.

Exactly because according to the latest forecasts from the OECD, the euro zone should experience growth of 3.9% this year, so far from the 6.5% of the United States.

The delay in vaccination does not explain this difference in growth rate: we have a one-month lag with the United States on vaccines.

They will have achieved collective immunity at the beginning of July, in Europe, it will be at the end of July.

The difference in growth is primarily due to the scale of the plans to support the economy.

The "land of liberalism" has hit very hard and very quickly in terms of public spending.

When the crisis strikes, the United States knows how to mobilize all of Uncle Sam's resources, whatever the cost.

In Europe, we tend to downplay the American plans by saying that they include social spending which exists in our country anyway.

But the fact is that they have mobilized more public money in this crisis and that they will come out of it faster.

Does this plead for strengthening support measures in Europe?

It pleads first for these stimulus measures to intervene quickly, which is not enough the case.

The European funds which have been adopted for the recovery (750 billion euros) must be released and spent.

However, it takes longer than in the United States.

Should we do more?

The debate has begun.

The European Central Bank itself, which we interviewed at the highest level, does not rule out that more needs to be done - while they are generally rather conservative when it comes to public spending.

In the coming weeks, the contrast between the two sides of the Atlantic will be more striking between an America that is leaving again, with bars and restaurants that reopen, airports that fill up, consumers who go out and spend.

And a Europe where the atmosphere is still in total reconfinement as in Italy or partial as in Germany or at home.