United States' GDP unexpectedly dropped in the fourth quarter due to:
Economists expect GDP bounce back in the first quarter of 2013 meanwhile USD will remain attractive because of:
- moderation pace of inventory building
- weakness in net trade
- outsized drop in government defense
Economists expect GDP bounce back in the first quarter of 2013 meanwhile USD will remain attractive because of:
- improvement in current account deficit
- new sources of domestic energy
- demographics
- attractiveness of US equities
- less easy monetary policy
Although global economy had slowed down, but progress was still being made. Going forward, the key risk to global economy continues to be the financial crisis in Europe. As long as no major banks fail, no large country defaults and Eurozone remain stable, then we will be able to foresee growth in 2013.