Showing posts with label euro. Show all posts
Showing posts with label euro. Show all posts

Saturday, November 5, 2011

Western economy growth rates portend recession

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This indicator has been making the rounds.  Recession soon follows when real GDP year-over-year falls below two percent, as it has for the past two quarters.  The indicator has a pretty good track record over the past 60+ years, never having missed signaling an ensuing recession a year or so in advance with no false positives.

And the situation in Europe is similar, with a garnish of extreme political instability thrown on for seasoning:

euro area gdp growth rate