The drivers and implications of Productivity differences between the US and EU

 

June 2024

The global economy is recovering from a sequence of large shocks in recent years, with the pandemic followed by a sharp increase in inflation in the wake of Russia’s war on Ukraine and its people.The necessity to deal with these immediate challenges meant that the attention given to major long-term challenges has been curtailed in recent years.
One of these major long-term challenges is the slowdown in global economic growth; the IMF forecast for global growth five years from now is 3.1 per cent, the lowest it has been in decades.
 
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