Wednesday, April 9, 2008

OECD keeps German growth outlook

The German economy will continue to grow this year and next according to a new OECD forecast. Domestic demand will help Europe's biggest economy to grow 2.1 percent this year and 1.6 percent in 2009. This is in stark contrast to the Bernankenistas who think judged by their actions that the world is coming to an end. Either we believe in the decoupling theory or the US economy/ consumer will prove more resilient and continues to grow. The truth lies probably somewhere in the middle. Economists like Brian Wesbury and Anatole Kaletsky might be vindicated after all.

update:12:00 p.m.
The US will fall into a "mild recession" this year according to the IMF.
The IMF said the U.S. Federal Reserve is correct to cut interest rates despite high inflation and the dollar was still "on the strong side" despite its recent depreciation.
In a new economic report wholesale sales fell in February which will create a drag on growth, and first quarter GDP could drop 1% according to an analyst.

source: OECD Keeps German Growth Outlook, Urges Bolder Change
By Brian Parkin, Bloomberg

source: Recession unlikely if US economy gets through next two crucial months
Anatole Kaletsky: Economic view, TimesOnline

source: Dollar slides after downbeat IMF forecasts

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