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The following article was published in our article directory on November 17, 2010.
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South-South trade growth Reduced East Asia In developed economies Dependence

Article Category: Business Management

Author Name: Amanda xzh

Currently, the United States is second bottom of the economy and high unemployment and concerns, the European sovereign debt crisis is not fully out of the haze, while the East Asian economies from the global financial crisis, the first recovery. World Bank's latest release, "East Asia Update," pointed out that developing countries in East Asia and Pacific region's output has recovered to pre-crisis level of economic growth this year expected to reach 8.9%. World Bank, International Monetary Fund and Asian Development Bank, the Asian economies have confirmed the importance of global economic recovery. "Asia leads the world", "economic focus shifted" and continue to appear in various media reports.

Accompanied by economic recovery in East Asia is a new phenomenon, weak demand in Europe and America market situation, the volume of trade between developing countries is rapidly expanding. Astonishing growth of South-South trade, to some extent reduce East Asia's dependence on the developed economies.

After a long silence, the South-South trade has once again aroused people's attention. Since the fall of 2009, including China and other Asian emerging economies, rapid recovery of exports. At the same time, exports to East Asia, are quietly changing the regional structure, China is that the main driving force behind the change, and guide. First half of 2010, the scale of China's exports surged, the growth of new show different from the previous trend, that is, the growth rate of exports from developing countries is much higher than the original European and American and other major trading partners, including cumulative increase in exports to Brazil reached 102.1%, Russia 70.7%, exports to the U.S. during the same period the increase was only 29.4%, about 36% of the EU. China in East Asia as the center of the industrial chain, the direction of China's exports of East Asia depends on the transfer means the transfer of the external market. Other emerging economies in East Asia there is a similar situation. Two months of 2010, South Korea on the "BRIC" the overall export growth rate reached 67.5%, for other emerging and developing economies in trade has also grown dramatically, for example, exports to Africa increased by 119% growth in the ASEAN 49.2%. In contrast, South Korean exports to the EU over the same period increased by only 4.9%. Other East Asian economies, emerging and developing economies export almost emerged on the European and American markets is much higher than the increase.

Above facts show that in the international financial crisis, has long been the rapid growth of North-South trade cover South-South trade, the importance of becoming increasingly prominent. As the International Monetary Fund economists have pointed out, if the emerging economies and developed economies, business cycles between the significantly different, then trade with developing countries to make export-oriented economies of East Asia from Europe and America Increasingly, the impact of immunization.

This is the new trend of South-South trade can be sustained? According to World Bank projections, the next three years, economic growth in developing countries is 6%, while economic growth in developed countries is only about 2%. Because of this difference in the growth of large, global economic growth in developing countries will become a major source. 2010 to 2012, about half of global demand will come from developing countries, rapid growth of imports will account for 40% of incremental export. Developing the potential of economic growth and consumption in sharp contrast with developed countries, which will lead to the future to further expand trade among developing countries. The development potential of South-South trade and sustainability for some time in the future be further verified.

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