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by bootsmann
152 days ago
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This is a commonly cited stat but it is mostly an exchange rate phenomenon that disappears when you adjust for purchase power. If you go by comparing GDP in dollars the EU recovered almost half this gap last year simply from the dollar dropping in value. |
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Being the world reserve and trade currency artificially props up the value of that currency (beyond what it would otherwise be), which has the result of artificially boosting GDP to GDP comparisons.