The figure compares growth outcomes and financing patterns in the United States and Europe (EU-27) over 2010–2025. While real GDP growth is higher in the United States, the gap narrows on a per-capita basis and is small when measured by national income per adult, suggesting broadly similar income growth outcomes.
At the same time, the increase in total non-financial sector debt relative to GDP is substantially larger in the United States than in Europe. From a national-accounts perspective, GDP is a flow measure, whereas debt reflects accumulated financing. Higher growth coinciding with faster debt accumulation is therefore consistent with a more leverage-intensive growth pattern.
The figure does not establish causality or assess long-run sustainability, but documents a compositional difference: post-2010 US growth has been accompanied by significantly greater balance-sheet expansion, while income-based growth measures show limited divergence between the two regions.
Sources: OECD, World Bank, Eurostat; IMF World Economic Outlook; IMF Global Debt Database.
Source: Full-Discussion3745
2 Comments
The US has 1,7 pct negative growth if we account for debt
Debt can be a powerful tool and the reason why the US can leverage it to this extend is due to the powerful position of the US dollar as reserve currency.
The US is simply using it to their advantage – now the big question is if the debt is used for long term economic investments & growth or short term political promises