The US economy is continuing to grow faster and generate more new jobs than Europe. Annual national income growth over the past five years has averaged 3.3% in the US against 2.6% in the EU. In the first quarter of 2026, the EU’s GDP was just 0.7% higher than a year before, while that of the US was up 2.6% on comparable measures.
These figures defy the widespread predictions that the US would lose its growth advantage after its government imposed a global trade tariff regime in 2025 and, one year later, started a war with Iran. Economists see several factors behind the resilience of the US economy.
