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Why the US economy stays strong even when its policies shock the rest of the world

By Alan Shipman, Senior Lecturer in Economics, The Open University

The US economy is continuing to grow faster and generate more new jobs than Europe. Annual national income growth over the past five years has averaged 3.3% in the US against 2.6% in the EU. In the first quarter of 2026, the EU’s GDP was just 0.7% higher than a year before, while that of the US was up 2.6% on comparable measures.

These figures defy the widespread…

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