BCA Insights

How Large Can The Eurozone / US Divergence Get? | BCA Research

Written by BCA Insights | Jul 17, 2023 4:57:00 PM
Euro Area growth has fallen sharply in recent months, resulting in a collapse of European economic surprises compared to the US. This transatlantic growth divergence was driven by the rapid decline in US inflation, the sensitivity of Europe to a weak global industrial cycle, and different policy choices in Europe and the US.