US economy loses No1 spot

Von Tonner · 03-22-08, 08:40 AM

Mar 20 2008 7:38PM
Paris - The US economy lost the title of "world's biggest" to the euro zone this week as the value of the dollar slumped in currency markets. Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro.
"The curious outcome of breaching this latest milestone is that the size of the euro zone's annual output has now exceeded that of the US," the economics department of Goldman Sachs, the Wall Street investment bank, said in a note to clients.
Taking official estimates of 2007 GDP - $13 843.8bn for the United States and €8,847.9bn for the euro zone - the economy of the latter passed the United States once converted into dollars, shortly after the euro topped $1.56.
The dollar sank to $1.5688 per euro late in European trading hours on Friday, at which rate the euro zone's 2007 GDP equates to $13 880.5bn.
The 2007 GDP estimates are as published by the US commerce department's Bureau of Economic Analysis and provided to Reuters on request for the euro zone by Eurostat, the European Union's statistics office.

Brag · 03-22-08, 08:50 AM

Not surprising. With spending out of control, expenditures in armamaments higher than the rest of the world combined, the Iraq war, something has to give.

DeepIron · 03-22-08, 08:58 AM

On the other hand, it did take 15 countries combined to take 1st place... :hmm:

Oh well, I'm relieved. It's time somewhere else had to deal with huge trade deficits...

Tchocky · 03-22-08, 08:59 AM

mm, not as important as the image of losing the top spot makes it appear. Mostly influenced by currency fluctuations and not a fundamental economic shift.
This does not mean the US will not be on top again soon. We'll have to wait for the dollar to stabilise and see what that means for trade balances before we can interpret long-term economic paths for the US/RoW.

03-22-08, 08:40 AM	#1
Von Tonner Seasoned Skipper Join Date: May 2005 Location: South Africa Posts: 711 Downloads: 44 Uploads: 0	US economy loses No1 spot Mar 20 2008 7:38PM Paris - The US economy lost the title of "world's biggest" to the euro zone this week as the value of the dollar slumped in currency markets. Taking the gross domestic product of both economies in 2007, the combined GDP of the 15 countries which use the euro overtook that of the United States when the European currency surged to a record high of more than $1.56 per euro. "The curious outcome of breaching this latest milestone is that the size of the euro zone's annual output has now exceeded that of the US," the economics department of Goldman Sachs, the Wall Street investment bank, said in a note to clients. Taking official estimates of 2007 GDP - $13 843.8bn for the United States and €8,847.9bn for the euro zone - the economy of the latter passed the United States once converted into dollars, shortly after the euro topped $1.56. The dollar sank to $1.5688 per euro late in European trading hours on Friday, at which rate the euro zone's 2007 GDP equates to $13 880.5bn. The 2007 GDP estimates are as published by the US commerce department's Bureau of Economic Analysis and provided to Reuters on request for the euro zone by Eurostat, the European Union's statistics office.

03-22-08, 08:50 AM	#2
Brag Navy Seal Join Date: Nov 2006 Location: Docked on a Russian pond Posts: 7,072 Downloads: 2 Uploads: 0	Not surprising. With spending out of control, expenditures in armamaments higher than the rest of the world combined, the Iraq war, something has to give. __________________ Espionage, adventure, suspense, are just a click away Click here to look inside Brag's book: Amazon.com: Kingmaker: Alexey Braguine: Books Order Kingmaker here: http://www.subsim.com/store.html For Tactics visit:http://www.freewebs.com/kielman/

03-22-08, 08:58 AM	#3
DeepIron Sea Lord Join Date: Aug 2007 Location: Too far from the Pacific right now... Posts: 1,634 Downloads: 0 Uploads: 0	On the other hand, it did take 15 countries combined to take 1st place... :hmm: Oh well, I'm relieved. It's time somewhere else had to deal with huge trade deficits... __________________ RFB / RSRDC Beta Tester RFB / RSRDC Modding Forum: http://forum.kickinbak.com/index.php RFB Top Post link: http://www.subsim.com/radioroom/showthread.php?t=125529 RFB Loadout: RFB_V1.52_102408: RFB_V1.52_Patch_111608: RSRDC_RFBv15_V396

03-22-08, 08:59 AM	#4
Tchocky Navy Seal Join Date: Jul 2004 Posts: 5,874 Downloads: 6 Uploads: 0	mm, not as important as the image of losing the top spot makes it appear. Mostly influenced by currency fluctuations and not a fundamental economic shift. This does not mean the US will not be on top again soon. We'll have to wait for the dollar to stabilise and see what that means for trade balances before we can interpret long-term economic paths for the US/RoW. __________________ [SIGPIC][/SIGPIC]