Impact The U.S. Economy Has On Emerging Markets [CHART] first appeared on FloatingPath
With a nominal gross domestic product of nearly $17 trillion, the U.S. is easily the world’s largest economy. Naturally, a small change in U.S. GDP can have a lasting impact on the economies of less developed countries.
An analysis conducted by Credit Suisse shows the degree to which an increase in U.S. GDP causes GDP shifts in select emerging nations. For instance, a 1% increase in U.S. GDP leads to around a 1% increase in Russia’s GDP after one quarter and around a 3% increase after four quarters.
This suggests that Brazil, Mexico, Czech Republic, Hungary, and Turkey are all heavily reliant on a stable U.S. economy. Nations like China, India, Poland, and Indonesia, while still quite benefited by a healthy U.S., are less dependent.