Diverging Fortunes: US And Euro Area GDP

Euro area GDP continues to drop in Q1, while the US recovery accelerates.

Figure 1: US real GDP (blue), Euro Area 19 real GDP (red), both in logs, 2019Q4=0. Source: BEA, European Union, and author’s calculations.

The US recovery has benefited from a tremendous amount of fiscal stimulus and — finally — a reasonable pandemic response (including an effective vaccination rollout).