Europe’s economy is moving faster than US economy - Covid-19 effect!!!

[kotajikikox]

I don’t know about you’ll but it’s been many year’s since I last heard, that Europe’s economy was moving faster than US economy, but thanks to Covid-19 times have changed and Europe’s economy is speeding ahead. Further if US doesn’t stop the spread of Covid, and reopen soon then they may find their economy lagging behind Europe for a long period of time. Lastly what kind of impact will this have for the world?, as we have always looked up to US and it’s $, so do you’ll believe that Europe’s € can make a comeback and replace the $ in the long run?.

The euro area economy is for once set for a sprightlier recovery from crisis than the U.S., thanks to starkly different responses to the coronavirus. America’s failure to get a grip on the pandemic is putting the brakes on its rebound compared with Europe, where many former virus hot spots managed to resume economic activity without causing a similar surge in infections.

Source:

https://www.bloombergquint.com/global-economics/europe-s-economy-set-to-outpace-u-s-in-upending-of-past-roles

Absolutely that Europe is now getting recovery faster compared to what US is experiencing.
we can also check in Covid recovering countries that they make it faster to flattened the  curve.

no Wonder  they maybe have cure?or just because they tighten the laws because  my Cousin tells me bout that  because  he lives  in that area.

[Latviand]

Europe's economy isn't "moving faster" than the US economy.The EU GDP is simply going down,but a little bit slower than the US GDP.All the big economies are in recession,so there's such thing as "moving faster" and there's no growth.

But the reality that both of them have experiencing serious economic crisis is a huge problem.

You don't need to compare the rate of GDP's fall due to recession of the two countries because I'm pretty sure that not all are safe in this pandemic. Economy that moves faster will only be achieve once we surpass this pandemic and when all of the happenings do go back to normal.

Europe's economy may outpace that of U.S. due to the ill effects of COVID-19 but let us bear in mind that this could only be temporary not to mention that the pandemic is not yet over as every country in Europe that has suffered the most could again experience next waves of this disaster, hopefully not!

Hopefully, the 2nd wave doesn't come because it can worsen the economic crisis that we are experiencing. People in Europe and US are both stubborn that's why the virus in their country is easily transmitted from one person to another. You can't blame the government because its citizens are the one who makes this suffering worse.

Besides focusing on the economy, they also focuses on the people's behavior.

Also, I think its irrelevant to compare economic data of Europe or its countries within  to that of the U.S. economy since that Europe is a continent whilst the U.S. is not. Imho.

But we should make the population as the basis and not the land mass because for me it is much precise.

The population in US is 331,002,651, while in Europe 747,668,167, so it is more likely that the spread of the disease in the Europe is faster than US, however, the country with a huge number of Covid-19 is still US.

[Vishnu.Reang]

Absolutely that Europe is now getting recovery faster compared to what US is experiencing.
we can also check in Covid recovering countries that they make it faster to flattened the  curve.

no Wonder  they maybe have cure?or just because they tighten the laws because  my Cousin tells me bout that  because  he lives  in that area.

If Europe is recovering faster, then the reason may be that the pandemic situation has stabilized there. The pandemic in the United States started later and even now it has not peaked there. So any potential recovery may take a few more months. But once the situation is stabilized, I have no doubt that the American economy will be back on track.

[arallmuus]

Hopefully, the 2nd wave doesn't come.

Unless the vaccine for the virus is discovered then that would happen. By the time it happen, Europe's economy would probably going down drastically compared with US. As it stands right now, only a few country would be able to survive the pandemic without the help of other country and one of them would be US

The population in US is 331,002,651, while in Europe 747,668,167, so it is more likely that the spread of the disease in the Europe is faster than US, however, the country with a huge number of Covid-19 is still US.

That because compared with the rest of the countries, US is conducting larger number of tests therefore there are alot of cases found on the country. Some country has lower number of infected not because those countries are safer but probably due to limited number of tests being done then the infected isnt noticed and recorded onto the data

[so98nn]

. . . and let us not forget that US spends more than 600 billion US $ on military alone!!

Dam, thats a huge stake on the military and which is not at all required in the current situation.

I was just thinking after reading your OP that US start thinking of spending this kind of money on the healthcare and proper research behind the COVID19. It would help them recover from the worsening situations faster and can get into business in no time.

It's funny how they are patrolling the US borders but not looking after the inside of nation which is getting weaker. At the last they will have empty nut shell!!

[wxa7115]

I don’t know about you’ll but it’s been many year’s since I last heard, that Europe’s economy was moving faster than US economy, but thanks to Covid-19 times have changed and Europe’s economy is speeding ahead. Further if US doesn’t stop the spread of Covid, and reopen soon then they may find their economy lagging behind Europe for a long period of time. Lastly what kind of impact will this have for the world?, as we have always looked up to US and it’s $, so do you’ll believe that Europe’s € can make a comeback and replace the $ in the long run?.

The management of the pandemic by the US government has been erratic to say the least and this is finally having an impact on the economy of the country as investors are losing hope the crisis can be controlled as the number of cases keep climbing up.In Europe despite how hard they were hit it seems they have found a better way to contain the pandemic and this is showing.

However there is a big difference between a good economic performance and the replacement of the dollar as the reserve currency of the world as I do not believe the European Union will last long enough to really challenge the dollar in that aspect.

[Yatsan]

I think there is nothing to be thankful about the covid-19 pandemic that brought up to Europe's fast pace on recovering compared to US because seriously we are facing into a serious manner and how fast the economy of a country recover must not serve as a race or comparison for there are certain reasons why US up until now is still struggling to control the inflation rate of covid-19 infected individuals in their country. It just so happen that US have a big bunch of population to be taken care of which leads them to have the most number of cases up until this current time.

Europe's fast recovery was indeed impressive at the first place but this must not serve to be a celebration that at last it have surpassed US economy just because of the existing crisis brought by this pandemic. Maybe it just so happen that Europe have reacted and put up a plan that can effectively control the scenario which makes them possible to recover fast compared to US. Different countries have different tactics and approaches towards resolving the problem but the important thing is that there is an improvement not just on the management of the cases but as well as for the recovery phase of the economy even if it is fast or slow

[panganib999]

The fast recovery of Europe after the pandemic was really great for they have fastly react and do preventive measures to be able to come back after the quarantine they have implemented for at leat 2-3 months which make them be able to control the situation before it got worst. The government and the people have coordinated very well that is why their businesses establishments have opened up to make their economy working alive towards recovery. On the part of US, what making them struggling to control the infection rate is of course the big population they have which makes it difficult for the government to track down the infected individuals which lead to the continuous spread of virus making them rise to the top of the countries with most cases up until now. That is the reason why they are still struggling to open up their economy because it is still dangerous to do such because it might just lead to worse scenario that infection will go into a massive inflation rate.

Both countries do have different approach and way of facing the crisis which must not be compared because it is a serious matter that every countries are facing right now. What the important thing is that even US are still struggling right now and have been left behind by Europe when it comes to the economic recovery, US is making its best to control the situation first for the safety of its people before getting their economic recovery to the full extent. It is a process to be done and it doesn't matter how fast they would do it what matters most is how they could surpass this first. On the other hand, salute to Europe for making the most out of it on making fast recovery after also experiencing serious problem in relation to this pandemic.

[bitbunnny]

Most european countries have helped their businesses to recover afte lock down in sense of financing part of employee's sallary of financial support to continue the work.
Also, EU has brought its own recovery plan and special dedicated funds that each member state will participate according to certain ratio, both in special loans and grants. All that helped to the optimism and for european economy to start to recover. I don't know that US has any of similar program or support. Of course, US and EU have different approach when it comes to economy and finances but EU government has do nothing to directly help the economy and employees and that will have deep consequences and this with pandemic is very special situation that will have very deep and long term consequences.

[Hydrogen]

Timeline: europe and asia were hit hard by the virus, before any confirmed cases were announced in the united states.

Geographically they are located nearer to the epicenter of the pandemic. They were hit by it first. Which could mean their economies will naturally recover before america's does.

I see the US President tweeting now & it is strange that neither he nor his advisors seem aware of this.

https://twitter.com/realDonaldTrump/status/1289397528639791104

[Lorence.xD]

Most european countries have helped their businesses to recover afte lock down in sense of financing part of employee's sallary of financial support to continue the work.
Also, EU has brought its own recovery plan and special dedicated funds that each member state will participate according to certain ratio, both in special loans and grants. All that helped to the optimism and for european economy to start to recover. I don't know that US has any of similar program or support. Of course, US and EU have different approach when it comes to economy and finances but EU government has do nothing to directly help the economy and employees and that will have deep consequences and this with pandemic is very special situation that will have very deep and long term consequences.

The response in some of the European countries that I have heard of are pretty superb, the fact that they follow the strict regulations during the lockdown helped a lot and I also can't forget that people followed the regulations which commendable for a mass to follow their authority. Regarding the OP saying that USD will be replaced by Euro, that will be difficult and complicated because there is was a system back then that makes Dollar a reserve currency for a country, we also should consider that US has a large gold reserves that backs their currency, I do not know much about monetary policy but I think USD being replaced by Euro is still far from conception.

[LeGaulois]

...

Actually @OP is not wrong. EURO is also a major reserve currency FYI. It's a currency used even by some microstates such as Vatican and Monaco, as well as countries that are not even Europeans such as Zimbabwe, N. Cyprus. Even in the UK there are shops accepting EURO.

If it replaced ~20 currencies and if there are a dozen currencies pegged to EUR it can replace the US dollars too. There are also countries swithching from USD to EUR for international trading (ie Russia, Syria, Cuba). 20 years ago, Iraq decided the sales of oil have to be done now in EUR (it changed back to USD only because The US invaded Irak and forced the country to change its decision) But there are more and more countries looking to avoid the US dollar. Russia owns now more EUR than USD.

Just to show that finally it's not something so difficult or impossible as you may think. It will take time but more people or countries decide to prefer EUR and lose confidence in USD more chance you will see EUR replacing UDS.

https://www.americanexpress.com/us/foreign-exchange/articles/could-dollar-be-replaced-as-world-reserve-currency/

But there is another contender, the Yen, which is also categorized as a reserve currency by IMF since5 years

[Rengga Jati]

so do you’ll believe that Europe’s € can make a comeback and replace the $ in the long run?.

Europe’s € can come back stronger but saying to replace the $ (USD) seems still too early, buddy. I am sure that the US government will do something to recover the economy. Now, probably Europe's economy is growing better than the US, but will the US give up early for this pandemic? I think as said before that they will make certain strategies after this pandemic to bring the power back. Indeed, Covid-19 brings big impacts to the US economy since there are many victims of this pandemic. Not only the health industries that get a very hard situation but also giving impacts to the economy in that country.

[exstasie]

Geographically they are located nearer to the epicenter of the pandemic. They were hit by it first. Which could mean their economies will naturally recover before america's does.

Doctors were seeing COVID-19 cases in January in the US. They were just slow to begin testing anyone or locking down. At this point it's pretty obvious the economic toll of the epidemic is deeper and more prolonged there.

Just to show that finally it's not something so difficult or impossible as you may think. It will take time but more people or countries decide to prefer EUR and lose confidence in USD more chance you will see EUR replacing UDS.

https://www.americanexpress.com/us/foreign-exchange/articles/could-dollar-be-replaced-as-world-reserve-currency/

But there is another contender, the Yen, which is also categorized as a reserve currency by IMF since5 years

Japan has the worst debt-to-GDP ratio in the world. The Fed today is taking pages out of the Bank of Japan's book. Why would the yen become the dominant reserve currency?

I think this is a good take on the Euro question:

There is no inherent reason why the euro could not become a credible alternative to the dollar for international payments and reserves. All the Europeans would need to do is replace their national sovereign debts with a single government bond market explicitly backed by the ECB and unconstrained by any fiscal rules. Until they are prepared to do that, however, Juncker’s ambition will remain nothing more than a dream.

https://www.barrons.com/articles/why-the-euro-wont-replace-the-dollar-1536945404

[Shasha80]

There is no need to look at the data either, I can understand why the US economy cannot move quickly, as the country with the highest virus spread,
certainly has a negative effect on the economy. US must immediately open quarantine in various cities, so that business and industry can run again.
And make the US economy keep pace with the fast-moving European economy.

[bearexin]

Yeah I have seen this news before about the Euro surging ahead of the US dollars. Coronavirus has hit the US economy badly where it hurts and they are still unable to resume a lot of Businesses due to the number of the people with the virus keeps increasing everyday and they are still trying to deal with it. Even China that brought the virus seems to have placed theirs under control as the number keeps on decreasing.

But if you’re going to be talking about Euro replacing Dollar, I don’t think that’s going to be happening, because once the US opens up their economy everything will boost back up again with higher speed than before and they will still go up to their position. Still many economic analyst are predicting about stagnant condition for USA economics incoming years due to various factors and their own policy must be one of them. It seems high man power country may move toward the position of top in terms strong economic conditions.

[bryant.coleman]

Japan has the worst debt-to-GDP ratio in the world. The Fed today is taking pages out of the Bank of Japan's book. Why would the yen become the dominant reserve currency?

The situation in Japan is different from those in other countries. There are two main reasons.

1. The interest rates are extremely low (usually in the 0.00%-0.25% range). This allows the government to borrow more and more money, unlike the case in other countries.

2. Most of the Japanese national debt is being held by its citizens. The Japanese citizens are also some of the largest holders of national debt from other nations, especially the United States.

And Japanese Yen is one of the very few currencies to have increased its value against the USD. 4-5 decades ago, the exchange rate was like ~350 JPY to 1 USD. Now this is 107 JPY to 1 USD. There is no other currency in the world, which has appreciated by this much against the USD.

[cotton ball]

United State economic have down after get pandemic issues and now they are minus more than 20% and look terrible problem in their country right now, they will try thousand way how to bring back their economic after pandemic virus. United State have good power and will control all product to make economic recovery to normal.

[coiningz]

We will see who is winning in this fight after several months after pandemic end. Too early to say something right now

[el kaka22]

Well, Europe is actually caring about their people and they are actually filling the hospitals and trying to not go outside too much and making sure that everyone who has to go outside wears a mask... like a normal response to a pandemic! Look at USA, they are actually leaving people to be, Jared Kushner literally dropped the testing numbers down just so the people in blue states could die, an unconfirmed gossip at this point but honestly I wouldn't be shocked but if you check out the number of cases in USA you can see that they have never really been great, they went from bad to recovering to horrible once again, people literally made mask thing a political thing for some reason even though in Europe right or left everyone wears it because it is not political at all.