Several changes this month. The CIA Factbook has updated its country-specific debt burden numbers, and thankfully is now showing a number for Canada (instead of “NA”), so I’ve revised the Thermometer accordingly. Several countries have traded places in the rankings, notably France and Germany—but their numbers are very close, so that’s not a significant change.
The USA’s lower-than-expected GDP growth in Q4 2005 contributed to the half-point uptick in its debt burden; however, there was no change in its ranking relative to the other countries on the chart. (I have more to say about the GDP growth number in a separate post.)
USA inflation, as measured by the GDP deflator, moved in the right direction: down, from 3.3% to 3.0%. The Fed apparently continues to see inflation pressure in the economy, but the bond market is giving mixed signals about it; we’ll see.
Click to enlarge.
