Thursday, November 15, 2012

UK Per Capita GDP Growth Versus US

Per capita GDP growth in the US has been much better in the US compared to the UK.  This graph illustrates the major contributing factors to the difference.  US fiscal policy has been a major factor even after the end of fiscal stimulus in the US in 2010.  Austerity policies in the UK may explain the different effect of fiscal policy.   The other major factor is exports.  The UK has been hurt by the recession in Europe.  They are more dependent upon exports to Europe than the US which has been particularly helped by exports to South America.

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