Euro-zone incomes will be hit harder than US

On the face of it, the surge in unemployment in the US implies that households are being hit harder by the crisis than those in Europe. But much of this reflects differences in the way that furloughed workers are being treated in the data. Taking this and other factors into account, we expect household incomes and consumer spending to fall much further in Europe than the US.
Gabriella Dickens Assistant Economist
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