No Wonder Europe Isn’t Growing

Post-crisis reforms have forced banks to become far too risk averse, starving the European economy of credit. The result is the stability of the graveyard.

Photo by Griffin Quinn on Unsplash

It’s one of the great puzzles in the global economy. Why is America growing so much faster than Europe? This great divergence has taken almost everyone by surprise. The US economy powered ahead by 2.5 per cent last year, while the eurozone managed to eke out a mere 0.5 per cent. This year the outperformance is set to continue, with America forecast to grow 2.7 per cent, three times faster than the eurozone which is only expected to grow by just 0.5 per cent, according to the International Monetary Fund’s latest World Economic Outlook. Britain is fo…