Is Asia Leading the Global Recovery?
With the United States stumbling a bit in this week’s announcement of fourth-quarter GDP, it might be an appropriate time to ask the question, is it Asia that’s leading this global recovery? Generally, I’d agree with an assertion that Asia, particularly China, is somewhat driving the global economic recovery. While U.S. GDP was set back by some one-off issues with defense spending, China saw quarter-on-quarter growth of around 2%, driven by up-ticks in industrial output and a boost in exports late in the year. The smaller Asian economies are also doing very well, but none swings the lead that China does.
When contemplating Asia, it’s important to remember that the economic story in Asia, and above all in China, was one of a real estate and infrastructure boom; that is, until two or three years ago. Read more
