US GDP falls 6.2% in 2008 4th quarter

Gross Domestic Product contracted 6.2% from October to December 2008. Falling exports as the world´s economy is in turmoil contributed to the decline as well as lower retail sales and a reduced customer spending. As the recession continues to deepen, analysts expect shocking figures for 2009 first quarter as businesses reduced investment as demand continues to drop.

The contraction of the US economy would have a deeper impact on its trading partners as demand for foreign goods and services dries up. The US government has announced various plans to boost consumer spending and business investment, only time will tell if they are successful in rebooting the economy.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza