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As expected, the IMF has cut its 2013 GDP growth outlook for the U.S. to 1.7% from 2%. The...

As expected, the IMF has cut its 2013 GDP growth outlook for the U.S. to 1.7% from 2%. The dollar and euro are called moderately overvalued, and the yuan moderately undervalued. Thanks to Shinzo Abe's efforts, Japan's GDP is now expected to grow 1.5% in 2013, up from a prior 1.2%.
Comments (4)
  • It's interesting to note that the IMF is essentially giving Abe's currency devaluation efforts credence by increasing their GDP forecast. Look for further weakening in the yen.
    11 Apr 2013, 05:51 PM Reply Like
  • IMF estimates are tinged with politics, and hope. Their willingness to support a country policy always shows in their reports and ratings for that country. Presently the IMF supports most QE efforts, whatever that means, because they do not want to be seen as a toothless tiger in international finance ( This agency has limited funds and must use moral suasion in lieu of cash). They may one day get tired of running to get in front of the herd preserve the appearance of leadership.
    11 Apr 2013, 08:21 PM Reply Like
  • The elephant in the room for Japan GDP is if they are successful in stoking inflation which will deflate the GDP gain. The other problem is that South Korea and other trading partners may decide to competitively devalue their currencies. There is no free lunch, this is a zero-sum game. For Japan to succeed in improving it's GDP, it will come at the expense of other nations.
    11 Apr 2013, 10:35 PM Reply Like
  • GDP growth forecasts cut?

     

    Well, that should be bullish.

     

    That should help debt sustainability forecasts too.

     

    Bullish!
    12 Apr 2013, 04:43 AM Reply Like
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