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4 charts show how the U.S. is on track for a faster economic recovery than Europe 

LONDON — The United States is recovering faster from the economic shock caused by the coronavirus pandemic than countries in the European Union.

The sheer amount of fiscal stimulus in the United States has been a critical driver in ensuring that the largest economy in the world resurfaces quickly. But there are other reasons allowing the U.S. to return to pre-crisis ouput levels much faster than its EU counterparts.

Silvia Dall’Angelo, senior economist at Federated Hermes told CNBC in March, cited an “institutional problem” in the European Union as one of the main issues hindering its recovery. As such, she said, “there are signs that the U.S. will recover much faster than the EU.”

Though European nations surprised financial markets in July of 2020, by coming together and approving an EU-wide fiscal stimulus plan that included borrowing 750 billion euros ($892 billion) from public markets, this money is not yet available to the 27 member states.

A series of legislative approvals are needed before the European Commission, the executive arm of the EU, can actually tap the markets. It is hoped this can take place this summer, but Germany’s constitutional court brought further uncertainty to the process last week by halting the approval of the program, which ultimately could delay disbursements further.

By contrast, U.S. President Joe Biden managed to get $1.9 trillion in fiscal stimulus approved after less than two months in office.

Growth expectations

Vaccinations

Savings rate

Unemployment

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