Real gross domestic product (GDP) is a measure of a country's economic output, adjusted for inflation or deflation. Using constant prices, real GDP makes it possible to assess economic growth without the influence of price variations. This provides a more accurate picture of a country's economic performance over time.
Among the countries that have seen real GDP growth outstrip that of the United States are : India (+6.7% YoY real GDP growth in Q2 2024), the Philippines (+6.3%), Indonesia (+5.1%), China (+4.7%), Russia (+4.1%), Hong Kong (+3.3%), Brazil (+3.3%), Poland (+3.2%) and Spain (+3.1%).
There are a number of factors behind the higher growth in the United States than in the Eurozone in the second quarter of 2024:
- Consumer spending: The US benefited from more robust domestic consumption, supported by a buoyant job market and favorable fiscal policies.
- Investment: US companies increased their capital investment.
- Innovation and technology: The US continues to be a world leader in technology sectors, which may contribute to faster growth.
- Exports: Increased global demand for US goods and services may have boosted exports. On the other hand, the Eurozone could face challenges such as geopolitical tensions, more restrictive fiscal policies or weaker domestic demand, thus limiting its economic growth.
