LyrArc Article Gist
The US economy is growing at a much faster pace than Europe or China in the last quarter of 2021- at 7% annualized growth in the fourth quarter up from 2% in the third quarter, according to Federal Reserve Bank of Atlanta. This compares to 2% in eurozone and 4% in China. Major US ports such as Los Angeles are processing 20% more container volume in 2021 than in 2019, while Rotterdam and Hamburg are almost flat compared to 2019 level.
Consumption of durable goods has jumped 45% above 2018 levels in the US, only 2% in eurozone, according to ECB data. The factory gate prices in China are far outpacing the consumer prices in China, suggesting weak domestic demand and strong foreign demand. Lars Jensen, head of network at container ship company A.P. Moller-Maersk says the global supply bottlenecks were started by this surge in US demand with more ships headed for the US taking ships away from other places.
The US economy will grow at 6% in 2021 and 4% in 2022, with wages growing 4% a year above the pre-pandemic trend rate, compared with 1% in eurozone, according to Bank for International Settlements.
This is pushing inflation up in other countries by pushing up the value of the dollar. In Mexico hitting 7.4% and the central bank raising interest rates 0.5% point to 5.5%. In Russia inflation up to 8.4% and central bank raising interest rates by 1percentage point to 8.5%.
The equipment investment in the US is up by 13% this year according to JP Morgan Chase, only 3.6% in eurozone, 0.1% in Japan. All this is creating a large gap between the US and Europe, US and China in economic growth and demand growth, and in income growth.More than 1,500 US firms have a presence in the UAE, from Bechtel, ExxonMobil, Global Foundries, Starbucks to Cold Stone Creamery. Major global companies — such as Lockheed Martin, Boeing, Northrop Grumman, General Motors, Microsoft, Nova Chemicals, FedEx, Eli Lilly & Company, Mayo Clinic and Cigna Healthcare – recognize the opportunities offered by the UAE economy, and many base their headquarters and regional offices in Abu Dhabi and Dubai. The UAE is an advantageous location for American companies due to its business-friendly environment and its diversified economy (with 66 percent of the country's economic activity coming from non-oil sectors, according to the IMF). A range of recent reforms – including allowing 100% foreign ownership – open up new opportunities to international companies, especially in the technology and manufacturing space.Beyond trade, UAE investments in the US support the creation of local jobs and provide liquidity to capital markets that spur innovation and advancements in many sectors, including aerospace, manufacturing, high technology, real estate and logistics. With one of the most open and innovative economies in the world, the United Arab Emirates is a dependable and significant economic partner of the United States. The UAE is the United States’ number one export market in the Middle East region — a distinction the UAE has held since 2009.FRANKFURT—A booming U.S. economy is rippling around the world, leaving global supply chains struggling to keep up and pushing up prices.
The force of the American expansion is also inducing overseas companies to invest in the U.S., betting that the growth is still accelerating and will outpace other major economies.
U.S. consumers, flush with...
Nice.
You must be logged in to post a comment.