Global Shivers Mean That Nobody Escapes the Worsening Economic Cold
By IRWIN STELZER
AUGUST 23, 2010
The U.S. economy grows smartly—at an annual rate of 5.6% in the last quarter of last year—but when the final figures are in America will have recorded a growth rate of less than 2% in the most recent quarter. Meanwhile, in that recent quarter Germany grew at an annual rate of close to 9%, and powered the euro-zone annual growth rate to almost 4%. But in part because America has now slowed, the Bundesbank and other experts are forecasting much lower growth rates in the second half of the year. In short, America spurts, Europe slows, so America slows; Europe spurts, America slows, so Europe slows. Coincidence? Not likely.