The divergence of productivity gains between the United States and the euro zone is a significant development

Productivity gains have increased markedly in the United States while they have disappeared in the euro zone, which is consistent with the gap between the two countries in terms of companies’ efforts to modernise and innovate. Long-term growth has therefore become markedly higher in the United States than in the euro zone, which: Justifies the yield spread; Attracts capital to the United States at the expense of the euro zone; Generates a gap between equity valuation and a weakening of the euro.