Situation
- On a quarterly basis GDP grew by 0.92% ( was 0.89% in Q4 2006)
- On an annual basis GDP grew by 3.42% p.a in Q1 2007 ( was 3.33% p.a in Q4 2006)
Background
- Europe - New Orders grow in Mar’07
- Euro area - Production growth sustained in Mar’07
- Euro area - Core inflation ( CPI ) growth at its highest since Jun’04
- Interest rates have been raised in Dec’06 towards 3.5% and in Mar’07 towards 3.75%.
- Members of the ECB have said that interest rates would again be be increased in Jun’07
Crosshair
GDP - Annual growth rate
|
|
USA |
Euro Zone |
Japan |
UK |
India |
| 2006q01 |
3.69% |
2.23% |
2.73% |
2.43% |
9.30% |
| 2006q02 |
3.51% |
2.85% |
2.12% |
2.75% |
8.89% |
| 2006q03 |
2.95% |
2.79% |
1.45% |
2.90% |
9.22% |
| 2006q04 |
3.13% |
3.33% |
2.38% |
2.96% |
8.64% |
| 2007q01 |
2.06% |
3.42% |
2.19% |
2.85% |
|
Conclusion
( click on images for a better visual)
- Can expect a GDP growth range of 3% to 4% for Q2 2007
- Growth should start dropping from Q4 2007 to a 1.50% area p.a towards mid 2008
Related links
- Euro area GDP - Up by 3.28 percent per annum in Q4 2006 ( 2.73 percent per annum in Q3 2006) USA - Q1 2007 GDP annual growth slumps to its lowest since 2003 Q3
- UK - GDP grew at 2.96 percent per annum in Q4 2006 as compared to 2.90 percent in Q3 2006
- Japan - GDP growth stronger in Q4 2006
- India - GDP growth at 8.64 percent p.a for Q4, October - December 2006