Friday, February 19, 2016

19/2/16: OECD Data Sums Up the 'Repaired' Advanced Economies State of Disaster

Just because everything has been so thoroughly repaired when it comes to the Advanced Economies, growth of real GDP in the OECD area has been falling for three consecutive quarters through 4Q 2015. Of course, you wouldn't know as much if you listen to exhortations of Europe's leaders, but... per OECD latest statistical update, in 2Q 2015, q/q real GDP growth across the advanced economies was 0.6%, falling to 0.5% in 3Q 2015 and to 0.2% in 4Q 2015. Which puts 4Q 2015 growth of 0.2% at lowest level since 1Q 2013.

In the U.S., economic growth slowed to 0.2% in the fourth quarter, against 0.5% in the third quarter, marking second consecutive quarter of growth slowdown. Small uptick in UK growth to 0.5% in 4Q 2015 still puts end of 2015 growth rate at below 1Q 2010-present average and at joint second lowest reading since 1Q 2013.

And there has been no acceleration in growth in the euro area's Big 4 for two consecutive quarters now, with both Italy and France dancing dangerously closely to hitting negative growth and Germany posting lacklustre growth since 1Q 2015.

Per OECD release, "Year-on-year GDP growth for the OECD area slowed to 1.8% in the fourth quarter of 2015, down from 2.1% in the previous quarter. Among the Major Seven economies, the United Kingdom (1.9%) and the United States (1.8%) continued to record the highest annual growth rates, although both down from a rate of 2.1% in the previous quarter. Japan recorded the lowest annual growth rate, 0.7% compared with 1.6% in the previous quarter."

About that 'normalised' and 'repaired' global economy, thus... 

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