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OEM Economic Newsletter
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economic outlook newsletter

Thursday, February 25, 2010

Sizzling Growth

The initial estimate of fourth quarter 2009 GDP growth was a sizzling 5.7%. However, much of this strength came from temporary inventory realignment efforts. Real final sales of domestic product (which eliminates the inventory effect) was up 2.2%. This is probably a more accurate reflection of the true state of the economy.

Divergent economic conditions across Europe are putting stress on the euro and the European Union. Dealing with the possibility of debt default by several member states has become a big priority. The Greek situation, in particular, requires careful monitoring.

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