Sunday, September 27, 2015

Nominal global recession in IMF data

Data for the world economy in the data base of the World Economy show a nominal decrease in Gross Planet Product in 2015. This contradicts the estimates for real growth and inflation (both 3%) that would be consistent with a nominal GPP growth of 6%. The inconsistency may be due to the fallacy of composition or to underlying country assumptions that are too optimistic or may reflect measurement error or wrong aggregation.