16 Jan 2015
US divergent growth factors - BNP
FXStreet (Guatemala) - Alexandra Estiot, analyst at BNP Paribas explained factors around the US growth outlook.
Key Quotes:
"Plunging oil prices and a surging dollar are holding down inflationary pressures".
"In the past, these trends have had divergent effects on growth: positive for falling oil prices and negative for a stronger dollar".
"The United States has become the leading fossil fuel producing country. Consequently, it is no longer all that easy to evaluate the consequences of declining crude oil prices. Moreover, many of its trading partners will be
hard hit by falling commodity prices".
"All in all, these effects, though only temporary, will have a bigger impact on prices than on growth".
Key Quotes:
"Plunging oil prices and a surging dollar are holding down inflationary pressures".
"In the past, these trends have had divergent effects on growth: positive for falling oil prices and negative for a stronger dollar".
"The United States has become the leading fossil fuel producing country. Consequently, it is no longer all that easy to evaluate the consequences of declining crude oil prices. Moreover, many of its trading partners will be
hard hit by falling commodity prices".
"All in all, these effects, though only temporary, will have a bigger impact on prices than on growth".