Contraction

The Bundesbank has lowered its forecast for German annual GDP growth in 2013 to 0.4 . The Central Bank of the Netherlands expects Dutch GDP to shrink by 0.5 this year following a contraction of about 1 in 2012.

The Bundesbank has lowered its forecast for German annual GDP growth in 2013 to 0.4 . The Central Bank of the Netherlands expects Dutch GDP to shrink by 0.5 this year 160 following a contraction of about 1 in 2012.

China s Inscrutable Contraction

A nervous contraction.

Ma'am is a contraction for madam .

Pessimists focus on the rapid decline of its demographic dividend, its high debt to GDP ratio, the contraction of its export markets, and its industrial overcapacity. But both groups neglect a more fundamental determinant of China s economic prospects the world order.

The Ifo Institute has forecast that GDP will contract by 2.2 in 2009. But the contraction will be primarily because of declining exports, a large portion of which consists of investment goods, as well as the drop in domestic equipment investment.

Mexico was very quickly able to re establish capital market access and to make early repayments of loans extended by the United States, although a severe recession followed in 1995, with a contraction equivalent to six per cent of GDP.

Forecasters assumed that monetary expansion would provide an effective antidote to fiscal contraction. The Bank of England hoped that by printing 375 billion of new money, ( 600 billion), it would stimulate total spending to the tune of 50 billion, or 3 of GDP.

This contraction includes a drop of 52 per cent in rice imports.

Consider the US. Though annual GDP growth is estimated to have rebounded to 4 in the second quarter of 2014, following the 2.1 first quarter contraction, that still leaves average growth in the first half of the year at a measly 1 .

In the last boom, construction jobs expanded significantly, with investment in housing as a share of GDP increasing by 50 from 1997 to 2006. As my colleague Erik Hurst and his co authors have shown, states that had the largest rise in construction as a share of GDP in 2000 2006 tended to have the greatest contraction in that industry in 2006 2009.

While positive growth rates of real GDP of over 7 per cent annually are noted in most years since 1992 (generated in construction, agriculture and public services), Gross National Product (GNP), has stagnated owing to a contraction in labour income from Israel since 1992.

Greece largely succeeded in following the dictate set by the troika (the European Commission the ECB, and the IMF) it converted a primary budget deficit into a primary surplus. But the contraction in government spending has been predictably devastating 25 unemployment, a 22 fall in GDP since 2009, and a 35 increase in the debt to GDP ratio.

Austerity s advocates rely on one and only one argument If fiscal contraction is part of a credible consolidation program aimed at permanently reducing the share of government in GDP, business expectations will be so encouraged by the prospect of lower taxes and higher profits that the resulting economic expansion will more than offset the contraction in demand caused by cuts in public spending. The economist Paul Krugman calls this the confidence fairy.

In dollar terms, GDP estimates dropped from 4.1 billion in 1999 to 3.3 billion in 2004, while GDP per capita fell from 1,493 to 934 over the same period.64 According to the World Bank, this contraction in the economy has continued despite unprecedented per capita levels of international aid disbursed to the occupied Palestinian territory in the past four years.65

Decoupling did not occur in 2008, when exports accounted for about 45 of pan Asian GDP (excluding Japan) and every emerging country in the region experienced a sharp contraction in growth as world trade plummeted. Nor is decoupling likely today, because exports still account for about the same share of the region s GDP, and about 50 of these exports are still headed to developed countries.

( OF NOMINAL GDP)

As of GDP

Then We draw it in towards Ourselves, a contraction by easy stages.

Then We draw it in towards Ourselves, a contraction by easy stages.

This contraction of the job market has had a greater impact on youth than on adults.

This, in turn, resulted in substantial currency devaluations and required a sudden contraction of trade deficits.

Given the possibility of policy induced economic contraction, however, it is a policy with some risk.

They have two types of flight muscle so called power muscle, which is stretch activated, which means that it activates itself and does not need to be controlled on a contraction by contraction basis by the nervous system.

Once the link between reform and growth is broken as it has been in Greece his argument collapses. With no path to growth, the creditors demand for an eventual 3.5 of GDP primary surplus is actually a call for more contraction, beginning with another deep slump this year.

Preliminary GDP data show a 6.8 contraction year on year in the second quarter of this year the largest since the 2011 earthquake and tsunami that devastated the country. Moreover, consumer spending fell by a record amount, contributing to a total real (inflation adjusted) decline of 5.9 from last July.

This is true of the recent boom bust sequence in Spain, Ireland, the United States, the United Kingdom, Bulgaria, and the Baltics, among others. In Ukraine, too, a huge boom in 2004 2007 was followed by a contraction amounting to almost 15 GDP in 2009 a direct result of domestic policies.

GDP

(iii) Emission intensity of GDP

I think this view is too optimistic, because I suspect that the government wants to finance its new expenditure with a tax hike. Moreover, the extremely sharp contraction in first quarter GDP may indicate that the disaster s negative impact on the economy was more significant than expected.

GDP growth

Share of industry in GDP (percentage)

Share of services in GDP (percentage)

Share of agriculture in GDP (percentage)

Moreover, the contraction in economic activity was associated with a severe compression of imports, primarily capital goods and intermediate inputs.

Since NAFTA, Mexican real GDP has grown at 3.6 per year, and exports have boomed, going from 10 of GDP in 1990 and 17 of GDP in 1999 to 28 of GDP today. Next year, Mexico s real exports will be five times what they were in 1990.

GDP (current US ) ____________

Investment rate ( GDP)

GDP (1994 US )

Cheap meaning a few percent of GDP.

Ed. expenditure as a percentage of GDP

Ratio of gross domestic investment to GDP

Ratio of gross domestic savings to GDP