Feature: United States / Focus on Asia
TRADE LINE issue 17
The United States faces the spectre of anaemic growth
The United States remains the planet’s leading economic power. As evidence, one need only consider the simple fact that the US consumer accounts for 70% of the US economy and 18% of global GDP. The economic spotlights are therefore focused for very good reasons on rising petrol prices, falling housing prices, unemployment and unequal profit distribution, all of which undermine household confidence. The outcome of the political debate between the Republicans and Democrats over the US budget and national debt as well as the Fed’s orientation and monetary policy as from July are therefore also under close scrutiny.
With the exception of Japan and especially Vietnam, Asia is doing well
With the exception of Vietnam, most Asian economies will enjoy solid and balanced growth. In China, the time for change has arrived, the most dramatic being that of wage demands.