donderdag 5 juni 2014

GDP Vs. Trade Balance

The trade balance numbers are given monthly, so they can be a good indication on how the GDP numbers will pan out as they are quarterly numbers.

We can predict the GDP numbers by looking at the trade balance numbers. Whenever the trade balance goes into deficit, the GDP growth actually accelerates. This is because people will import more to consume more (more consumption is more deficit). A big part of GDP is mostly based on consumption.

For more info on this, go here.

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