The US economy is continuing to grow faster and generate more new jobs than Europe. Annual national income growth over the past five years has averaged 3.3% in the US against 2.6% in the EU. In the first quarter of 2026, the EU’s GDP was just 0.7% higher than a year before, while that of the US was up 2.6% on comparable measures.

These figures defy the widespread predictions that the US would lose its growth advantage after its government imposed a global trade tariff regime in 2025 and, one year later, started a war with Iran. Economists see several factors behind the resilience of the US economy.

The US runs consistently wider budget deficits than the EU, UK or China. By spending more than it collects in tax, the US government creates more income for the people it employs and the businesses it buys from. This extra income in theory boosts demand in the economy, pushing output growth higher and reducing unemployment.

Most European governments also run budget deficits. The average budget deficit of EU countries in 2025, for example, was 3.1% of GDP. But the US deficit, at 5.8% of GDP that same year, is giving a much stronger stimulus.

The US also channels a higher proportion of its GDP into business investment and research and development than the EU. Europe was spending €270 billion (£230 billion) less than the US on innovation in 2021, with this spending concentrated on its century-old car industry rather than new technologies.

Since 2025, AI has been the focus of US investment. This has helped the US maintain its hold over global technology and digital platforms. Rapid uptake of AI across US industry has also widened the margin by which its labour productivity growth is outpacing Europe’s. Output per hour in professional services has increased by over 18% since 2019 in the US compared to just 5% in the EU.

Economy-wide productivity gains have allowed US real wages (wages adjusted for inflation) to edge higher since 2019. This has sustained consumer demand while also enabling the strong profit growth that has lifted US share prices to record levels. In contrast, average real wages in the EU have barely grown over the past 20 years while corporate profits in Europe remain subdued.

The US technological lead could be dented by Donald Trump’s immigration clampdown, which extends to skilled scientists and students. Research suggests annual GDP growth rates in the US could currently be as much as 0.8 percentage points lower than if net unauthorised immigration had stayed on its pre-2025 trend.

But the Trump administration and its tech-entrepreneur supporters also credit their success to more freedom to gamble with new ideas, while Europe regulates them more heavily and China tries to harness them for state control. Although the EU generates as many tech start-ups as the US, many relocate there when they start to expand.

Another factor explaining the resilience of the US economy is that American industry benefits from substantially lower energy costs than in Europe. The US produces more fossil fuels than Europe and taxes them less. It is also advancing fast with cheap renewable sources, despite the government’s scepticism towards solar and wind.

Reliance on fossil fuels, and indifference to carbon emissions, may raise the US’s long-term economic vulnerability. But for now they ensure a cost advantage that is allowing the US to regenerate its manufacturing and meet much of the global demand for data-based services such as e-commerce and generative AI.

Favourable financial engineering

The US spends more on goods and services than it produces domestically. This results in a large current account deficit, which widens as US growth picks up. To finance this deficit, the US has to borrow from the rest of the world continuously.

For most countries, the resulting rise in liabilities to other countries would lead to a weakening currency and higher inflation, or a spell of slower growth to rebalance the current account. However, the US benefits from global use of the US dollar.

The US dollar is the universal standard for trade in commodities. And due to a perception that the US will continue delivering high returns on investment and repaying its debts, the rest of the world typically responds to shocks such as wars by moving money into US assets – even if US policy is responsible for those shocks.

In the 1960s, France’s then-finance minister, Valéry Giscard d’Estaing, who later served as its president, railed against what he called the “exorbitant privilege” the US gains from printing the world’s currency. The US will retain this privilege as long as global trade and finance are mostly conducted in US dollars.

This situation is unlikely to change. The EU’s efforts to unify its financial markets to support its single market have proceeded slowly and were set back by Britain’s 2016 decision to leave the bloc. Britain and the EU have lost global financial marketshare since the UK broke away.

Attempts by China, Russia and major oil-exporting countries to launch an alternative reserve currency have also made little progress. But they might not regret this. The dollar’s global role makes it harder for the US to control its inflation, as it has to watch the wider impact of raising interest rates.

When inflows of foreign capital strengthen the dollar, US industry also becomes less competitive on the global stage. And with so many governments worldwide under pressure to balance their budgets, America’s deep-pocketed consumers and businesses might still be the “engine of growth” that enable other regions to expand.

Impressive economic performance between 2021 and 2024 did nothing to revive the political fortunes of Trump’s predecessor, Joe Biden. Continuing the positive trend has proved similarly fruitless for Trump. At only 36%, his approval rating is extremely low.

This is the downside of growth driven by government deficits and rising corporate profits. Many Americans feel they are paying for higher prices out of wages that are rising only marginally, and will struggle to afford any future rise in living costs.

By PHILLIP NIETO, US POLITICAL REPORTER

Published: 13:41 BST, 13 July 2026 | Updated: 13:47 BST, 13 July 2026

Sam Neill’s friends and colleagues have paid tribute following the actor’s death at the age of 78.

The Jurassic Park actor died in hospital in Sydney on Monday. Family described his passing as ‘sudden and unexpected’ in a statement published to his Instagram page.

Richard E. Grant, who was a close friend of Neill’s, led the tributes on Monday, sharing a string of photos on his Instagram page and writing: ‘Knew @samneilltheprop for 3 decades and finally worked with him on PALM BEACH in 2018. An officer and a Gentleman in the truest sense.’

Richard, who lost his beloved wife Joan to cancer in 2021, then added his gratitude to his late friend who ‘guided and helped me through a very difficult time in my Life. Sail on, kind Sir.’

Toni Collette, a frequent collaborator of Neill’s and a longtime friend shared a heartbreaking tribute, writing on Instagram: ‘I love you, dear Sam. You hero. You legend. You sweetheart. Our great friend. You are already missed so very much. Continue in peace wherever you are.’

She added in another post: ‘My friend Sam left us this morning. Yes he was an incredible actor. But he was also the most beautiful, decent gentleman. A big hearted king with a dry, hilarious wit. I feel so lucky to have known him. When I think of Sam I always see him giggling. It is a terribly sad day.’ 

Richard E. Grant, who was a close friend of Neill’s, led the tributes on Monday, sharing a string of photos on his Instagram page and writing: ‘An officer and a Gentleman in the truest sense’

New Zealand prime minister, Christopher Luxon, paid tribute to the Northern Ireland-born star who was raised in New Zealand, saying in a statement: ‘He started out when there was barely a film industry in this country to speak of.

‘For more than fifty years he took New Zealand stories to the world and his talents helped make our film industry into what it is today – one of our greatest cultural exports. His work will be watched and loved long after all of us.’

Australian Prime Minister Anthony Albanese also shared a statement on X, writing: ‘Sam Neill starred in so many beloved Australian stories and he earned a special place in Australian hearts.

‘Wry and dry, thoughtful and laconic, Sam fought illness with the same dignity, humour and conviction that gave strength to his every performance.’

‘He will be much mourned and long remembered. May he rest in peace.’

Nicole Kidman who starred opposite Neill in the 1989 thriller Dead Calm, said in a statement: ‘Sam was one of the greats … a joy to be around. We met when I was just 18, and he took me under his wing and we stayed friends for life. He was charming, kind, funny and intelligent. He will be greatly missed and my heart goes out to his family.’

Colin Trevorrow, who directed Neill in 2022’s Jurassic World Dominion, recalled working with him on the film in his tribute.

‘Sam Neill was a deeply soulful and beautiful man. He was a friend and collaborator at a challenging time, and his strength gave us all strength,’ he wrote. 

Richard and Sam starred together in the 2019 Australian comedy Palm Beach after being friends for three decades (pictured in the film)

Toni Collette , a frequent collaborator of Neill’s and a longtime friend shared a heartbreaking tribute, writing on Instagram: ‘I love you, dear Sam. You hero’

She added in another post: ‘My friend Sam left us this morning. Yes he was an incredible actor. But he was also the most beautiful, decent gentleman’

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‘I’ll remember him for his tranquility, his love of wine, and for the calm assuredness he brought to his characters. It’s not every lifetime you get to befriend a legend. Forever grateful.’

Actor Alan Cumming commented on Neill’s Instagram: ‘Ahhh Sam, what a glorious beautiful man. You are missed. Sorry to the family for your immense loss.’

Kylie Minogue wrote: ‘Vale Sam,’ a Latin term for farewell or goodbye used in Australia. 

Australian actress and Muriel’s Wedding star Rachel Griffiths, who worked on two films with Neill, wrote on Instagram: ‘Rest in peace Sam – for the characters chuckles and good company thank you. Love to all who loved you – you will be missed.’ 

Australian director Phillip Noyce, who directed Neill in the 1989 thriller Dead Calm alongside Nicole Kidman, told the Guardian: ‘Sam was perhaps the most gentlemanly actor ​I ever encountered. Level-headed and sincere in a show business world of crazy egos. His word was his contract.’

‘​In a strange way Sam was responsible for my long career in Hollywood. When there were rumours that George Miller might have secretly directed Dead Calm, Sam assured the American producer​, Mace Neufeld​, that I was indeed the director –​ and Mace then signed me to direct Harrison Ford in Patriot Games,’ the director added.

Neill’s family said in a tribute: ‘It is with immense sadness that the whānau (family) of Sam Neill share the news of his passing on Monday 13th July, in Sydney Australia. Sam was surrounded by family and passed with the dignity that has characterised his whole life,’ they said.

‘The loss was sudden and unexpected but blessed by the fact that Sam remained cancer-free. They would like to express their deepest gratitude to the staff at St Vincent’s Private Hospital for their incredible care.

‘More details will be shared later, but for now, on behalf of the family, we ask that you respect their privacy as they navigate this immeasurable loss.’ 

New Zealand prime minister, Christopher Luxon, paid tribute to the Northern Ireland-born star who was raised in New Zealand, calling the actor ‘one of our greatest cultural exports’

Australian PM Anthony Albanese also shared a statement on X, writing: ‘Sam Neill starred in so many beloved Australian stories and he earned a special place in Australian hearts’

Actor Alan Cumming commented on Neill’s Instagram: ‘Ahhh Sam, what a glorious beautiful man’

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Australian actress and Muriel’s Wedding star Rachel Griffiths, who worked on two films with Neill, shared an Instagram tribute 

Colin Trevorrow, who directed Neill in 2022’s Jurassic World Dominion, recalled working with him on the film in his tribute

In April, Neill – who is best known for playing Alan Grant in the Jurassic Park franchise – announced tests had found he was cancer free.

In an interview with Channel Seven, Neill detailed how close he came to death after chemotherapy stopped working. A costly, cutting-edge treatment prolonged his life. 

Neill said: ‘I’ve been living with a particular type of lymphoma for about five years and I was on chemotherapy and the pretty miserable business, but it was keeping me alive.

‘Then the chemo stopped working. I was at a loss and it looked like I was on the way out, which wasn’t ideal obviously.’

Neill underwent a special treatment called CAR T-cell therapy, which genetically modifies a patient’s own T-cells to recognise and destroy cancer cells. Private treatment costs around $AUD540,000.

‘I’ve just had a scan just now and there is no cancer in my body, that’s an extraordinary thing. I’m very, very excited that this can happen,’ he said at the time.

The treatment is currently in clinical trials to treat another blood cancer, myeloma.

Neill also said he was planning to make a return to acting. 

In April, Neill – who is best known for playing Alan Grant in the Jurassic Park franchise – announced tests had found he was cancer free

‘It’s time I did another movie,’ he said.

Neill first went public with his cancer diagnosis in 2023 after being diagnosed with cancer the previous year, after initially experiencing swollen glands.

He found out about  his stage-three blood cancer while he promoted Jurassic World Dominion in 2022.

In that film he reprised his role as Grant alongside original co-stars Laura Dern and Jeff Goldblum alongside Chris Pratt and Bryce Dallas Howard.

He told Australian Story at the time: ‘I’m not in any way frightened of dying. That doesn’t worry me. It’s never worried me from the beginning, but I would be annoyed.

‘I’d be annoyed because there are things I still want to do. Very irritating, dying. But I’m not afraid of it.’

Neill, who was born in Northern Ireland to an English mother and a New Zealander father, first disclosed the news of his illness in his memoir, Did I Ever Tell You This, where he writes in the first chapter that he is ‘possibly dying’.

Reflecting on life at the time, the seasoned actor once again said that he did not fear death, admitting, ‘I’m not afraid to die. But it would annoy me. Because I’d really like another decade or two, you know?’

‘We’ve built all these lovely terraces, we’ve got these olive trees and cypresses, and I want to be around to see it all mature. And I’ve got my lovely little grandchildren. I want to see them get big.

‘But as for the dying? I couldn’t care less.’

Neill shares a son, Tim, 40, with New Zealand actress, Lisa Harrow, to whom he was married between 1980 and 1989. 

The star was married to Japanese makeup artist Noriko Watanabe from 1989-2017 and they share a daughter, Elena, 35. He also adopted Noriko’s daughter from her first marriage, Maiko. 

Neill first went public with his cancer diagnosis in 2023 after being diagnosed with cancer the previous year, after initially experiencing swollen glands (pictured in 2025)

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Neill was born Nigel John Dermot Neill in Ireland, with his family moving to New Zealand in 1954. 

He went by the nickname Sam, dropping Nigel after deciding Sam was ‘less awkward’. 

‘I found I moved more easily in the world as a Sam. Nigel is an awkward fit in most circumstances. Imagine being a movie actor called Nigel Neill,’ he said in 2014. 

Neill starred in three Jurassic Park films including the original in 1993, Jurassic Park III in 2001, and Jurassic World Dominion in 2022. 

He became a household name after playing palaeontologist Grant in 1993’s Jurassic Park alongside Laura Dern and Jeff Goldblum.

He would reprise the role in Jurassic Park III in 2001, and again in Jurassic World Dominion just four years ago.

He has recently worked on Godzilla x Kong: Supernova and The Last Resort, both of which are now set to be released posthumously in 2027.

On the small screen, Neill appeared in episodes of The Simpsons, Peaky Blinders, The Tudors and The Twelve.

Neighbours of Miss Widdecombe have recalled how she fit into daily life in the village of Haytor, on Dartmoor.

Will, who did not wish to give his last name, said he would see Ann Widdecombe walking on Dartmoor.

He said: “Like everybody else, she was just part of the community. It’s a safe area, it’s lovely.

“It shocked me because I thought, poor lady, she’s had a heart attack or something. Then I heard about (the murder investigation) and I thought, crikey.”

Alison and Simon Gilbert, who have lived in in Haytor Vale for more than a decade, said Ann Widdecombe was a well-known figure locally.

Mrs Gilbert said: “She was a nice woman, really nice woman, and she had a great sense of humour. It’s a lovely area – you talk to strangers.

“Everyone saw her as quite an opinionated politician, but to us she was just a person in the community.

“First of all, we got back and saw police and thought maybe it was a burglary, a lot of us suspected she had a heart attack or something.”

“She didn’t deserve to die like that,” Mr Gilbert added.

Davey Short was on Seaton Carew beach when he saw one person floating face down in the water next to a child who was struggling in rough seas.

The 48-year-old says he didn’t hesitate and rushed into the ocean to bring the boy to safety, despite screams from onlookers not to help.

Tragically, two men died trying to save the youngster and his brother, who was also rescued on Sunday (July 12) afternoon.

The painter and decorator says he had “no choice” but to risk his own life to rescue the child.

Seaton Carew hero Davey Short has spoken of the dramatic moment he saved a little boy’s life during a rescue mission which saw two other men drown. (Image: NORTH NEWS & PICTURES)

Davey, who lives in Seaton Carew, Hartlepool said: “I was sat on the sand dunes, and I saw a lad swimming in the sea. He was next to a man with his head in the water, and initially I thought he was snorkelling.

“A woman was hysterical on the beach. I asked her what the matter was and she said, ‘Will you save my son?’ I can’t swim.

“Instinct took over, I ran straight in, and swam out as far as I could. I was telling the lad to try and swim towards me.

“He managed to get to me, but I was struggling to get back out with him.

“Another man came to give me a hand, and we managed to get him out of the water.

“Two of us dragged him out while the waves were hitting us.

Police remain at the scene in Seaton Carew on Monday (July 13). (Image: NORTH NEWS & PICTURES)

“The little boy was fine, but it was too late for the other two men who had tried to help before me.

“I couldn’t get further out to get to them. 

“It was scary, the waves were hitting me. I knew I wouldn’t be able to get to them.

“I am a dad myself. I didn’t even think about the danger to myself. I just wanted to get that little lad out.

“I couldn’t not go in. There were people screaming at me not to go into the water, but I said, ‘I am not leaving that bairn’.

Seaton Carew hero Davey Short has spoken of the dramatic moment he saved a little boy’s life during a rescue mission which saw two other men drown. (Image: NORTH NEWS & PICTURES)

“I know I had put my own life at risk, but I had no choice.”

Davey says the boy he saved was about 12 or 13 and had been playing in the waves when he got swept out to sea.

He added: “His brother, who was about 15, went to try and help him, and also got into trouble.”

After this, two men attempted to save the boys, but tragically died before they could do so. The older brother was rescued by a different man.

Davey said: “Everybody has thanked me. The mother was hysterical, but she has thanked me so much and has been messaging me. 

“I am not a hero, I just did what any man in my position would do.

Seaton Carew hero Davey Short has spoken of the dramatic moment he saved a little boy’s life during a rescue mission which saw two other men drown. (Image: NORTH NEWS & PICTURES)

“I just went in. I didn’t even think about it.”

Yesterday, Superintendent Glen Ward of Cleveland Police, said: “Our deepest sympathies go out to the families of both the men involved in this tragic incident today.

“Despite the best efforts of emergency services, sadly both men were pronounced dead a short time after being brought out of the sea.

“We are conducting enquiries into the circumstances of what happened today, although the deaths are not being treated as suspicious and a file will be prepared for the Coroner.

Seaton Carew hero Davey Short has spoken of the dramatic moment he saved a little boy’s life during a rescue mission which saw two other men drown. (Image: NORTH NEWS & PICTURES)

“I would like to remind everyone that open water comes with serious risks. We know it is inviting in the hot weather, but we would encourage people to refrain from entering any open water at all. Today we have sadly seen the true tragedy that can happen as a result.

“Please take extra care and enjoy the warm weather as safely as possible.”

The RNLI has been contacted for comment.

The force has confirmed in a major update into the death of Ann Widdecombe that counter-terrorism are now investigating

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Counter-terrorism have been drafted into the murder probe of the late MP Ann Widdecombe.

The former Conservative minister and later Reform UK spokeswoman was found dead in her home in Hayton on Dartmoor on Thursday.

Counter Terrorism Policing South East has today (Monday) said in an update that “new information and evidence has come to light”.

Emergency services swarmed Ann’s home at about 11.40am where her body was found having sustained serious injuries.

Counter-terrorism officers have rearrested the 28-year-old white British man on suspicion of the commission, preparation or instigation of acts of terrorism and are now leading the investigation into her death.

They said that new information and evidence had come to light during the inquiry.

Head of National Counter Terrorism Policing, Laurence Taylor, said: “Building on the progress made by our colleagues in Devon and Cornwall Police, we now have new information and evidence that means Counter Terrorism Policing is now leading the investigation.

“We are pursuing multiple lines of enquiry to establish the motivation for this attack.

“Our priority is progressing this investigation quickly, with all the capabilities we have available to us. If anyone has any information, please share it with the police.

“We would like to thank local communities, the wider public and the media for their ongoing support and patience, and would ask them to continue to support us in the next stage of the investigation.”

By JAMES GORDON, US NEWS REPORTER

Published: 01:24 BST, 13 July 2026 | Updated: 12:58 BST, 13 July 2026

A Russian military training exercise descended into chaos after a soldier lost control of a powerful rotary machine gun.

It sent the weapon spinning wildly and forced nearby troops to dive for cover as bullets appeared to spray unpredictably across the range.

The dramatic incident was captured on video and has since spread widely across social media, where viewers described it as a spectacular training failure and questioned how the weapon had been mounted.

The footage, which the Daily Mail has not been able to independently verify, including when or where it was filmed, is described online as showing a Russian mobile fire group training exercise involving a YakB-12.7 rotary machine gun.

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The weapon was originally developed for use on the Mil Mi-24 ‘Hind’ attack helicopter.

The video begins with a soldier positioned behind the mounted machine gun while another serviceman stands just a few feet away.

At first, the exercise appears routine as the gunner opens fire but within moments the enormous recoil generated by the weapon appears to overwhelm the mounting system.

Instead of remaining fixed on its target, the heavy machine gun suddenly begins rotating violently around its support.

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A video circulating online appears to show a Russian soldier losing control of a mounted rotary machine gun during a training exercise

The video’s description claims the weapon is a YakB-12.7 rotary machine gun originally developed for the Mil Mi-24 Hind attack helicopter. Another soldier ducks, left, just in time!

The footage appears to show the gun beginning to rotate violently shortly after the soldier opens fire. The operator appears unable to control the weapon as it spins around its mounting

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The soldier clinging to the weapon is pulled with it, desperately trying to maintain control as the entire assembly spins faster and faster.

As the gun continues firing, the operator is whipped around the mount before being violently hurled over a nearby barrier.

The weapon appears to continue rotating under its own momentum while still discharging rounds.

Nearby troops can be seen ducking and scrambling away as the machine gun swings through wide arcs.

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The footage appears to show bullets continuing to fire while the uncontrolled weapon rotates.

Eventually another serviceman rushes toward the spinning gun and manages to stop it moving.

Moments later, he reaches toward the barrel but immediately pulls his hand away, apparently after discovering just how hot the metal had become following the sustained burst of automatic fire.

No information has been released about whether anyone was injured during the incident.

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The soldier is flung over a nearby barrier while still attempting to hold onto the machine gun

The soldier cannot hold onto the weapon any longer and it flung over a fence

Join the discussion

What does this training disaster say about the state of Russian military preparedness today?

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The exact location, date and circumstances surrounding the exercise also remain unclear.

According to the video’s online description, the training involved a Russian mobile fire group using a YakB-12.7, a four-barrel rotary machine gun designed for helicopter use rather than ground-mounted firing positions.

The footage has prompted a flood of commentary online, with many viewers focusing on what they believed may have caused the spectacular loss of control.

One person wrote: ‘Physics is cool. Instructor grabbing hot barrel after? Chef’s kiss.’

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Another suggested the mounting arrangement itself may have been flawed.

‘In the end you can see they mounted it off-bore. So once the recoil starts turning the barrel it will just accelerate…’ the commenter wrote.

Another serviceman eventually approaches and appears to stop the machine gun from rotating.

A third viewer speculated that the balance of the weapon may have been compromised.

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‘Yeah, it looks like they used the mount for a second barrel to hold the ammunition box rather than the second barrel to balance it.’

Others could not believe one of the soldiers appeared to touch the barrel moments after the sustained burst of fire.

‘Even after that spectacular display of stupidity, the guy with the bandana feels the need to one up him and touches the searing hot gun barrel. (That’s gonna leave a mark.)’ another commenter joked.

Ederson is set to sign a contract, but not at Man Utd after they pulled the plug on a deal with Atalanta and have set their sights on Aston Villa’s Youri Tielemans to bolster their midfield. Chelsea, meanwhile, are set to officially unveil Xabi Alonso amid working on deals for Pep Chavarria and Maxence Lacroix.