After Dollar Crash, U.S. No Longer the Largest Economy
March 15th, 2008I’d rather not mention a story that references Goldman Sachs as a source for anything, but I don’t have any reason to believe that this calculation is wrong.
Via: Reuters:
The U.S. 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 U.S.,” the economics department of Goldman Sachs, the Wall Street investment bank, said in a note to clients.
Taking official estimates of 2007 GDP — $13,843,800 billion for the United States and 8,847,889.1 billion euros for the euro zone — the economy of the latter passed the United States once converted into dollars, shortly after the euro topped $1.56.
“We will not enter into a recession”, “the economy is robust”. George W. Bush
“Do not depend upon the people that got you into this mess to also get you out.” James Puplava