GDP

US gross domestic product may be reduced only by one-half of 1 percent at worst as a result of a Japanese crisis, said Brian Levitt, economist at Oppenheimer Funds.

According to Levitt’s view, exports account for only 10 percent of U.S. GDP, and Japan accounts for only 5 percent of that number. "Five percent of U.S. exports—10 percent of the U.S. economy—so one-half of one percent to U.S. GDP at the absolute worst," he told CNBC Wednesday.

In early European session today, the UK sterling recovered from its late Asian session's loss against other major currencies and spiked higher after a report showed at 4:30 am ET that the UK economy grew at its fastest pace in nine years in the second quarter of this year.

Forecasted US economic growth for the rest of this year and next was cut again for a third month in a row by a panel of about 50 economists.

Thus far, the latest Blue Chip Economic Indicators report released Thursday reflected the weaker outlook for second-half 2010 growth stemmed from lower anticipations for consumer spending, business investment and private construction.

Citigroup has lowered its full-year global growth forecasts for 2010 and 2011, releasing its strategy report Thursday. Besides, the bank also cut its outlook for China’s 2010 economic expansion by 1%.

Fed’s forecasts for growth and inflation, that concluded the economic recovery to be proceeding more slowly than it was expected in the spring, appeared to be understated. However, members of Federal Reserve policymaking committee consider that the slowdown did not guarantee new policy actions.

Nevertheless, the Fed leaders agreed to explore options for supporting the economy further if conditions worsen.

Thursday in Tokyo, bullion slid after China's growth data for the second quarter was reported to be slightly weaker than expected, that’s helping revive the precious metal's appeal as a hedge tool at a time of economic uncertainty.

Thursday, in early Asian session the Japanese yen ticked up against rivals as a weaker-than-expected Japan's final fourth quarter GDP report prompted investors toward the safe-haven Japanese currency.

Japan's GDP expanded by 0.9% in the fourth quarter of 2009 compared to the previous three months, the Cabinet Office said today. That was weaker than expectations for a 1% gain compared to the 1.1% increase indicated in last month's preliminary report.

Early on Friday in Europe, the British pound lost ground, hitting new multi-week lows against the euro and the franc and declined against the yen and the US dollar, amid national economic reports.

Tuesday, during early European deals the UK sterling crept lower against its key counterparts as UK GDP increased by less than expected in the fourth quarter of 2009. The pound fell to near a 6-week low against the yen.

According to Zhang Liqun, a Chinese economist at the Development Research Center, China's gross domestic product growth will likely increase by 9.5% in 2010 which will be mostly helped by strong domestic consumption and corporate investment.

"I expect domestic consumption to grow at a fairly fast pace this year on the back of consistent policies to boost car and owner-occupied home sales," Zhang was quoted as saying by the official China Securities Journal.

Last year Chinese GDP increased by 8.7%.

According to David Roche, global strategist at Independent Strategy it is the euro that will replace the US dollar as the next reserve currency as long as Europe has a better growth strategy than the US.

He says that the fact the German economy has recorded its fastest post-war contraction, at 5 percent in 2009, with exports falling by 14.7 percent, alongside investment, though paradoxically will bring opportunities for private investors.

The U.S. economy is growing again but recovery will be moderated by a weak labor market and troubles in commercial real estate, Atlanta Federal Reserve Bank President Dennis Lockhart said.

  Speaking to the Rotary Club of Atlanta, Lockhart said inflation was not an immediate source of concern amid an expansion that would probably remain sluggish.

US gross domestic product could grow at an annual rate of as much as 3 percent next year as consumers and businesses start to regain confidence, Peter Cardillo, chief market economist from Avalon Partners, told CNBC Tuesday.

"It's all a question of confidence and that confidence is coming back. It's not only coming back among the consumers, but it's also coming back among the businesses," Cardillo said.

According to senior central bank researcher’s Monday statement, as money supply growth accelerated over the recent months China's economy is on the verge of overheating again.

Jiao Jinpu sees the rapid rise in the more narrow measure of money supply, M1, in recent months as an indication that money is flowing at a faster pace. That measure grew 34.6% in November from a year earlier, compared with 29.7% for the broad M2 measure.

Wednesday, during the European trading the single currency revealed mixed trading against its major counterparts despite an encouraging economic report from Germany, that showed that the trade surplus increased more than expected in October. euro, thus, recovered from early Asian session's new multi-week low against the US dollar and a 2-day low against the Swiss franc. At the same time, on the other hand, the euro declined to a 12-day low against yen and pared its Asian gains against pound.