GDP

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. 

Wednesday, during Asian session, the Japanese unit surges versus counterparts, hitting multi-day highs amid the government report over country's GDP increase. 

Tuesday, during early European session, the Swiss franc advanced against its U.S., European and Japanese rivals, climbing to a 5-day high against the yen as Switzerland's economy exited recession in the third quarter as the GDP increased after declines over the past four quarters. 

 GDP, thus, climbed by 0.3% sequentially in the third quarter after declining at the same pace in the second quarter. That was the first rise in GDP in five consecutive quarters. Growth in the third quarter was in line with economists' expectations. 

Survey, conducted by Dow Jones Newswires, showed India's economy continued its rapid expansion in the latest quarter. The results even exceeded analysts' expectations for growth of 6.3%.

 Thus, nation's GDP surged by 7.9% during the July-to-September period compared to the year-ago quarter, an acceleration from 6.1% rise in the April-June quarter.

 According to the Central Statistical Organization, "significant growth" have also been seen in the mining, manufacturing, construction and energy sectors.