Headline: Bear on the prowl Source: Euromoney Date: September 2001
The US share of world GDP has been going up rapidly and it’s higher now than in the first years of the Reagan administration in the early 1980s. “That feels good in the short term,” says Malpass. “It means that the US economy is the engine of growth for the world, but I also think that it’s a big liability.” It’s a big liability indeed. The latest official statistics show that the US is in hock to the rest of the world to the tune of $2.1 trillion and rising. The US current account deficit, at 4% of GDP, has soared into what would be a danger zone for most other countries. |