The U.S Continues to Pull Away from Europe
January 22, 2010
Hats off to Carpe Diem for its chart showing the difference in real GDP per capita between the U.S. and the European Union continues to widen. The difference has doubled from $4,000 in 1982 to $8,236 in 2009 (US $41,646 EU $33,410).
We believe that given the demographic problems facing Europe in the coming years, this gap will continue to widen. The bright light for Europe is the former Soviet satellites, that have almost another decade before their demographic problems hit home as they will in Western Europe between 2010 and 2020.
We expect to see a two tiered growth problem with the former satellites growing faster, given their positive demographic landscape and not being constrained by Western Europe's complex social and economic systems. This in all likelihood will cause problems at the "Top Table" of the EU15, with the faster growing countries demanding more say in Europe's affairs.
Stay Tuned.
Source: Carpe Diem
