Report
Patrick Artus

Why did the euro zone fall behind the United States from 2017 onwards?

If we look at per capita productivity growth and real gross domestic product growth in the United States and the euro zone, we see that the euro zone has been falling behind the United States since 2017. We are trying to identify the causes of the euro zone's economic stall. This may be due to: Population ageing; Insufficient investment in new technologies and R&D spending; A halt to non-resident investment in the euro zone; The deterioration of the education system. We see that the downturn in productivity in the euro zone relative to the United States since 201 7 can be explained by: The shortfall in R&D spending since that time; The halt to long-term investment in the euro zone by non-residents since then, while such investment remains very high in the United States; The deterioration in the quality of the euro zone’s education system, while the quality of the US education system is more or less stable .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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