Factors Contributing to Robust US Growth

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The robust US growth can be attributed to various factors. Firstly, buffers built up during the pandemic period have helped households, companies, and governments endure monetary tightening. Additionally, low interest rates and significant savings accumulated during the pandemic have provided a cash cushion. Energy sector disparities between Europe and the US, with the US benefiting from lower energy prices and exports, have also played a role. Moreover, stimulative fiscal policies and a large fiscal deficit of 7% of GDP have further supported the US growth. Despite these factors being apparent, the belief was that they would be used up quickly, especially excess savings of around $2 trillion accumulated during the pandemic.

America’s central bank left rates untouched, to widespread market delight. Why is this economic cycle confounding expectations so much, and how to bring it to a gentle end? We look at the modern fortunes of Vodafone, a once-mighty telecoms firm that is slimming down to get healthier (11:21). And why Britain’s system for protecting its historic buildings from change…needs to change (16:10).

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