Erin Burnett has been travelling the globe in search of the market movers of tomorrow. So far she has been to Dubai in the United Arab Emirates and Mumbai, India. Today, she is in London. Like last week's comparison of the UAE and India, here are some stats comparing the UK and the US.
The economies of the UK and the US dwarf the emerging markets of India and UAE. The combined GDP of India and the UAE is ~$1.5 trillion, less than 10% of the output of the United States and the United Kingdom. The difference is growth. GDP growth for the US and UK is projected at 2-2.5% for 2008 vs. the double digit numbers seen in India and the UAE.
The UK and US economies do track closely to one another. GDP per capita is comparable
at $46K and both countries are net importers. One difference is interest rates. While the Federal Reserve has been aggressively cutting rates in the US, the Bank of England has been more hesitant leaving their bank rate at 5% compared to the Fed Funds target rate of 2%