Bank of America Global Research discusses its expectations for the US growth trajectory relative to that of the Eurozone.
"The proposed $1.9 US fiscal stimulus, in addition to the $900bn approved in December, plus the $2-3tn expected for infrastructure later this year will bring the total US fiscal support for the next few years to up to 6 times the EU Recovery Fund, half of which will be spent this year. We expect a much stronger US recovery as a result, double the Eurozone pace for this year. The consensus expects similar growth in the US and the Eurozone in 2021-22," BofA notes.
"Actually, the US will be the only G10 economy, according to our forecasts, to more than fully recover this year, and reach above pre-Covid GDP levels? The Eurozone will reach pre-Covid production levels only in 2023. Even more, the US will be the only G10 economy to be above pre-Covid GDP trends by next year, while all other G10 economies will stay well below such levels for years to come," BofA adds.