ClaimsJeremy Grantham

“Fifteen months later, I think we will be lucky to reach 2%.”

Jeremy Grantham, GMO essayist July 2010 GMO Quarterly Letter July 2010 Summer Essays (GMO) archived copy

Prediction Economics and markets

Developed countries will be lucky to reach 2% annual growth over the roughly seven years from 2009.

Mostly true True in substance, wrong in a detail.

Prediction: Statements about events outside the person's control, checked once they fell due: did they come true?

The second judge said resolved true; the verdict shown is the first judge's.

Said for an organisation they lead or work for; it counts on both records.

What would count as true or false

The test is average annual real GDP growth of developed (advanced) economies over roughly 2009–2016, as reported by the IMF World Economic Outlook advanced-economies aggregate or the OECD total. 'Lucky to reach 2%' means growth averages about 2% or less. True: the average annual growth over the period is 2.0% or below. Mostly true: it is just above 2%, up to about 2.2%. Mixed: the result depends on the choice of start year (e.g. whether 2009 is included) or aggregate, with one reasonable basis below 2% and another above it. Mostly false: the average is between about 2.2% and 2.5%. False: the average is above 2.5%.

Set before the research began.

Evidence (2)

  1. E1 OECD Economic Outlook, Volume 2016 Issue 1 OECD (mirror hosted at oecd.github.io)

    “Global growth has languished over the past eight years as OECD economies have struggled to average only 2 per cent per year, and emerging markets have slowed, with some falling into deep recession.”
  2. E2 OECD Economic Outlook, Volume 2016 Issue 1 OECD (mirror hosted at oecd.github.io)

    “OECD GDP growth is projected to be just under 2% on average over 2016-17, broadly in line with outcomes in the previous two years”

Reasoning

E1, the OECD's 2016 Economic Outlook, says OECD economies "struggled to average only 2 per cent per year" over the previous eight years, which puts the period's average at about 2%. That eight-year window (roughly 2008–2015) is close to, but not the same as, the 2009–2016 period the criteria name. E2 projects OECD growth of just under 2% on average over 2016–17, which it describes as broadly in line with outcomes in the previous two years, so adding 2016 would likely not push the average much above 2%. Together, the sources point to growth averaging about 2%, in line with the prediction. Because the window doesn't match exactly and the figures are approximate, the verdict is mostly true rather than true.

Cite this claim

Jeremy Grantham, “Developed countries will be lucky to reach 2% annual growth over the roughly seven years from 2009.” (said July 2010). Verdict: mostly true. Reliability API, claim c_a8d2c05979db, method 0.1.0+28da144b, dataset release v1.1.2. https://epistacklabs.com/claims/c_a8d2c05979db

This claim is in dataset release v1.1.2, with the same verdict.

Reply to this claim

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More prediction claims by Jeremy Grantham

  1. Resolved false Prediction January 2023
    “we can conclude that the final low for this market might be well into 2024.”

    The final low of this bear market might come well into 2024.

  2. Mixed Prediction January 2023
    “near certainty it was a year ago, is much more likely than not.”

    A continued market decline of at least substantial proportions is much more likely than not.

  3. Mostly false Prediction January 2023
    “after a bloodbath is not unusual and may very well not outlive January.”

    The January 2023 rally may well not outlive January.

  4. Mostly true Prediction January 2023
    “may help to support the market for a few more months.”

    The Presidential Cycle's positive influence may help support the market for a few more months.

  5. Resolved true Prediction 31 August 2022
    “Each cycle is different and unique—but every historical parallel suggests that the worst is yet to come.”

    Grantham says historical parallels suggest the worst of the current market downturn is still to come.

All of them

Verdicts are made automatically; how verdicts are made.