✴️ Chart of the Day: Impact of Equity Price Changes on GDP ✴️

in #money7 years ago

The Oxford Global Economic Model suggests a 10% change in stock prices alters the level of GDP in the G7 countries by around 0.3% on average after two years.

A 25% equity correction would potentially cut US growth to around 1% by 2019.

The risk of such a damaging stock price slump could prompt early Fed action to restrain markets, if valuations continue to stretch.

equity prices impact GDP.png

Source: Oxford Economics, WSJ

Best regards,

@ayusor

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Love your post bro @ayusor Thanks

I love it too

thanks mate ;-)