President Donald Trump says the country is leading the recovery of the global economy and financial markets. There are also some who oppose this statement, and the situation reflected in the data, as always, depends on how to interpret it.
“our economy is significantly better than Europe – people have to be very aware of that,” trump said at a news conference on Wednesday. “We are working with Europe to solve their difficulties and we will always help them.”
the announcement came just hours after two senior Federal Reserve officials said that the United States had failed to control the new epidemic, putting the country at risk of a long-term economic downturn. They say Europe has adopted stronger epidemic prevention and control measures to enable them to recover faster.
according to the data, the stronger European blockade may be the reason for the larger contraction of GDP earlier, but this may in turn help its latest data. According to the study, for example, credit card use, travel and location information show that the data of Germany, France, Italy and other euro zone economies, as well as Norway and Japan, are close to the pre epidemic level, while Spain is slightly behind. The UK, the US and Canada are still well below the level of economic activity at the beginning of this year.
most economists say that although US spending and employment rose sharply in May and early June, activity has leveled off since then, indicating that the recovery will last longer.
“Europe, which had suffered worse before, is now rebounding more strongly,” said Bruce Kasman, JP Morgan’s chief economist and head of global economic research.
he said that the rebound in the US stock market in recent months was “significantly ahead of the world”, and the value of the US stock market has increased by $9 trillion since March, “an unheard of figure.”
aggregate data show that the value of the US stock market has actually increased by more than $12 trillion since the bottom of March. But in the past two months, the S & P 500 index has not been ahead by some measures due to the accelerated spread of the epidemic in the United States. Its 11% gain lagged behind the 14% rise in the Shanghai Composite Index and was in line with the dollar gains of the European Stoxx 600 index.
but it depends on how you measure it. In the second quarter, GDP in the United States shrank by 9.5% year-on-year, while the euro zone shrank by 15%. But part of the reason for America’s better performance is stronger growth in the second half of 2019, not because of its excellent response to the epidemic. The US GDP fell at an annualized rate of 32.9%, the worst performance since records began in the 1940s.