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As Global Economy Shifts, Companies Rethink, Retool

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Why rebalancing the world economy will not be easy. Rebalancing depends on the success of American companies selling goods in China and Germany. China and Germany report large gains in exports through August 2010. The US trade deficit in 2010 is up 40% from 2009. One reason is that it involves changing behaviour of consumers. Another reason is each percentage point reduction in the annual savings rate in Germany and China would increase consumer spending by $42 billion. By comparison each percentage point increase in the annual savings rate for the US reduces spending by $100 billion, according to estimates by McKinsey Global Institute.

Efforts to achieve Rebalancing of the World Economy in 2010-2012.

11/07/2010

Grouped Articles

As Global Economy Shifts, Companies Rethink, Retool

Wall Street Journal 11/07/2010

Steven Pearlstein - After years of imbalances, a painful reckoning

Washington Post 11/11/2010

Don't Bank on China 'Rebalancing'

Wall Street Journal 01/20/2011

Canada's Carney, Ahead of G-20, Presses China and Europe to Step Up

Wall Street Journal 02/25/2012

China Speeds Economic 'Transformation'

Wall Street Journal 03/06/2012


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