- Stockmarket falls impact on economic growth
- Impact is felt by both corporates and consumers
- Danske Bank suggests US economy may be less resilient going into 2012

By Chris Shaw

Over the past month, fear of recession and ongoing uncertainty with respect to European and US debt issues has seen equity markets globally lose ground. As an example, the S&P500 Index in the US has recently lost around 16% in just over two weeks of trading.

This has prompted Danske Bank to examine the pass through impact from equity prices to the real economy. Based on Danske's analysis, a 10% fall in equity prices can lead to a fall in GDP growth of around 0.33% in annualised terms.