In contrast, when one looks at the current per capita real GDP, major economies including the United States are still below 2007 levels, but Japan’s output loss is relatively small. Furthermore, in terms of the rates of increase in GDP per worker, while the U.S. and European economies have not regained 2007 levels, Japan has surpassed its 2007 level.
In this vein, South African asset prices, specifically bonds and foreign exchange, weakened in the latter months of the year as market participants became increasingly convinced that further negative ratings actions were imminent. Unfortunately, they were proven to be correct.