Looking forward in the year, Director and Senior U.S. Economist at Commerzbank AG Bernd Weidensteiner analyzes the development of U.S. growth, employment, and what these trends mean for Europe’s economy.
With improvements in the labor market and no repeat of the government shutdown in sight, the U.S. economy is strengthening; Weidensteiner has a positive outlook for employment and housing in the coming year. However, there is a longer-term risk of a bubble forming in financial markets.
Finally, while the U.S. recovery helps Europe tangentially, Europeans still must address certain domestic factors. Considering that the financial crisis hit the euro zone harder than the United States, the EU’s recovery will remain behind America’s for now.