Global Industrial Contractions and Budget Projections
Industrial production is contracting in every G7 economy and all of the BRICS, with the exception of China. Particularly within the G7 economies, these concerted downturns have intensified of late.
At the same time, often cited U.S. Congressional Budget Office projections show that real GDP growth will average 4.3% from 2014 through 2017. However, since the start of the century average real GDP growth has been 1.6%.
Are the production data properly reflecting economic situations around the globe – or are optimistic growth projections right? ECRI’s latest international report reconciles these issues, with clear implications for economic activity in the months, and years, ahead.