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Banyan: Afloat on a Chinese tide

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Growth in China is supporting growth in other Asian countries. But other Asian countries are still dependent on the economies of Europe and the USA. About 60% of the exports to China by Malaysia, say Malaysian officials, are components for products that are re-exported to the western countries. Domestic demand in China is insufficient to support the high level of growth in China and other Asian countries; in the event demand in Europe and N. America slides back in the face of austerity cuts in 2011, growth across Asia is likely to fall sharply.

The effects of slowing growth in China on the U.S. economy and the economies of Brazil, Australia, Indonesia, and other commodity producing countries

09/02/2010

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