Economy

US Benefits From Energy Price Hikes, Unlike Europe - IMF Chief

WASHINGTON (Sputnik) – A recent spike in energy prices benefited the US economy but harmed Europe, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday.
Sputnik
"[The] US has benefited from more favorable conditions in terms of energy prices, something that has been quite a serious factor for Europe, not a positive factor for Europe," Georgieva told reporters, when asked why the US economy is doing better than Europe's.
An influx of foreign labor force also helps the US economy, despite creating domestic migration issues, the IMF chief added.

"Not everybody who crosses the border adds positively to the economy, but that labor supply also gave the US another comparative advantage," she stated.

Georgieva pointed out that the influx of labor force allows salaries to stay at their current levels because there is no strong pressure on wage growth due to the lack of workers.
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Among other factors that help the US economy, the IMF chief highlighted its focus on innovation. Europe still has work to do to unleash the power of innovation, Georgieva said.
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