Friday, December 19, 2008

2009 GDP Growth per country - Funny Figures?

Most of the information about the current economic slowdown (or meltdown, or apocalypse) gives the impression that the current situation is the worst in decades. However, when going over 2009 GDP forecasts the outlook isn't quite that grim. For example, The Economist predicts growth at -0.2% for the US, 0% for Japan, 0.2% for Germany, 8.0% for China, and 6.5% for India.

As for Latin America, growth prospects for the whole region are 2.2%, with Mexico looking at 0.9%, Brazil at 2.7%, Argentina at 2.5%, Colombia at 2.5%, Peru at 6.4%, and Chile at 2.8%. Even the oil dependent economy of Venezuela is set to grow 1.8%.

Considering the world's population will grow by about 100,000,000, or roughly 1.5%, and the World Bank predicts 0.9% global GDP growth, there will be an average decrease in income per capita. So, either the media focuses only on the worst news out there, or GDP statistics are way off and we are in for a rough ride.