The slowdown in Europe has been a greater drag on the US economy than the softening in China. With the euro-zone on the cusp of a deep recession, this trend will only become more pronounced. The direct hit to US GDP growth may be fairly small. Nonetheless, the indirect effects from a further increase in uncertainty and fall in confidence could be larger.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services