Replying to Avatar pam

Interesting. What do you reckon is the cause Europe's flatline growth in GDP ? More internal trades? Import tariffs or their Value Added Tax in Europe is crazy high like 16% - 25% . Even if the product is cheap, they have to sell at a more expensive price in their country to recoup some profit margin. Hence it might be cheaper to advance internal trade which would impact GDP calculations.
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Andrew 2y ago

Based on what I'm seeing, it's a combination of exchange rates (USD got stronger over that time) and flatter population growth in Europe.

If you make the same comparison using GDP per capita in PPP to account for the exchange rate changes, it isn't as large of a difference.

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pam 2y ago

Hmm ok. I'm not too familiar with it, I thought PPP close to each other is a good thing, lol. In terms of GDP - local spending, FDIs, gov't spending and net exports is directly proportionate hence I'm guessing many factors can contribute? That and most of global trade is in USD. A lot of countries have federal reserves in USD. Thanks for explaining!