3 ms·
You're expressing it in USD, while European economies use the Euro. In the timeframe you mention the USD/EUR exchange rate went from $1.50 per €1 to $1.09 per
by apexalpha 3y ago
You're expressing it in USD, while European economies use the Euro.
In the timeframe you mention the USD/EUR exchange rate went from $1.50 per €1 to $1.09 per €1.
This alone accounts for most of the difference. You should look at GDP PPP for a better idea of actual economic impact.
There will still be a difference as the US is simply a more competitive economy. But it isn't nearly as big as in these numbers.
- TheCoelacanth 3y agoExchange rates change for a reason. The stronger exchange rate is a reflection of a stronger economy.
- apexalpha 3y agoIt's mostly a factor of interest rates. And the USD is also the global reserve currency, helping it rise in times of instability, more so than the Euro. But none the less, it still enormously skews your numbers in favour of the US, to the point they're practically useless. According to your numbers the economy of France and Italy have shrunk over a period of 15 years. This is simply not the case. You should look at GDP PPP.