The $2.3tn global GDP write-off
Global nominal GDP is likely to contract by about $2.3tn in 2015, a consequence of the USD strengthening.
It will be the sixth time since 1980 that global nominal GDP contracts in dollar terms and the second biggest contraction since 2009.
This change will have far reaching implications across markets, principally for commodity prices.
Honey, I shrunk the GDP
The world is going to be about $2.37tn smaller in 2015 than what we thought when we prepared our Year Ahead forecasts (Table 1). This is not insignificant, as it represents 3.2% of last year’s estimated global GDP. For perspective, that would be as if an economy of the size between Brazil’s and the UK’s would have just disappeared. In our calculation, we include the US, the Euro area, Japan, the UK, Australia, Canada and all the emerging markets we cover. Together they totaled $70.9tn last year, or 91% of the world output as measured by the International Monetary Fund.
http://www.zerohedge.com/news/2015-02-07/global-economy-will-shrink-23-trillion-2015
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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