By Adam Carr
On World Bank figures, output was up near $US75 trillion last year, which is about 20 per cent higher than the pre-GFC peak — with global gross national income about 25 per cent higher (on a purchasing power parity basis). Don’t go thinking real growth rates are weak either — this is another statement that is misleading at best. Sure, if you only want to look at very short time period, 2004 to 2007, you could conclude that growth is weaker now.
I actually get the sense this is where global policy makers are getting tripped up — they’re simply not making the correct comparisons and are using a very small sample as their benchmark for what is normal or what should be. It’s the only explanation I can think of for why they constantly describe the global recovery as weak, when it isn’t. History often gives a better sense of perspective and average growth in the 10 years before that was closer to 3 per cent, which as it happens is the post-GFC average as well.
Read more here: Business Spectator