Global Domestic Product ( GDP or Y ) main variable are : consumption ( C ) , Investment ( I ) , Govermemt Expenses ( G ) and trade balance ( Import – Export ) :
Y = C + I + G + ( X – M )
According to last three CPI, inflation is falling means demand is falling means consumption is falling.
Investment are still high because other countries are still facing some serious problems and US Economy shows strong Labor Market.
Goverment Expenses are still high to cover unemployment rate.
Trade balance is getting better than before.
In Conclusion, GDP Q1 must fall but should be more than 1%. Any number less than 2% will be negative for the dollar and for the stocks.
Investors will watch this report because it will determine if the US Economy is still strong to face more Interest Rate Hike or not.
GDP Report Today
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ARTIKEL TERKAIT
