Two years ago most countries in the world were reporting negative GDP in the wake of the Global Financial Crisis. Countries that still had positive GDP growth were seeing it cut dramatically. For example, The United States 2009 Q1 GDP was -4.90 and China’s was +6.20 down from +9.0% in 2008 Q3. 2009 Q1 was the low point for worldwide economic growth in the crisis. After that most countries around the globe started growing. Now, two years later Asia is growing faster than other regions in the world with the exception being Japan.

Recent Asia GDP Figures:

Singapore 23.50%
Philippines 9.80%
China 9.70%
India 8.20%
Taiwan 6.90%
Indonesia 6.60%
Vietnam 5.43%
*Russia 4.50%
Malaysia 1.50%
Hong Kong 1.50%
South Korea 1.40%
Thailand 1.20%
Japan -0.30%

*Russia lies in both Asia & Europe

Large economic regions are also growing, but at lower rates than the Asian region except for Africa. The Euro Area, United States, UK, Australia, and Canada are growing very slowly in a range from +0.3% to +1.8%. Latin America is growing with all countries reporting GDP under +2.5% except for Peru, which is growing very fast at +9.2%. Central and Eastern European countries have GDP growing from +.02% to +3%. Pre spring revolution GDP showed African countries rowing from +.80% to +10% with most at +4% and higher. The recent revolutions may impact GDP negatively in Egypt, Tunisia, and Libya.

Another look at this shows exporting countries like the Asian region growing well with the import countries in the Euro Area, UK, and US growing slowly. These slow growth economies are among the largest in the world, but are underperforming. That means the Asian region is growing without much help from three of the world’s biggest economies. It helps of course that China and India are in Asia and are exporters of many goods and services.

Singapore’s fast growth is great to see because Singapore is the world’s 2nd biggest container port. Many Asian exports from China going to Europe and Africa pass through Singapore. The Singapore container port used to be the world’s biggest, but was recently passed by Shanghai adding to China’s regionally and worldwide important economy. Again Shanghai’s ascension to 1st means that China is also exporting many goods without much help from The Euro Area, UK, or US.

What about future GDP growth? Well, if the Euro Area, UK, and/or US see GDP growth accelerate, they will be importing more goods from Asian exporting countries. So, better growth in the underperforming economies will add GDP to already well performing Asian exporting economies. Also, Japan should start growing again with reconstruction starting after its recent terrible disasters. Japan will need to import raw materials for its reconstruction, which should benefit Russia and China.

Prior to the Global Financial Crisis, growth in the Euro Area, UK and US was very important to growth in the Asia region. Post crisis, the Asia region is less dependent on the Euro Area, UK and US. That is a positive thing, but any sharp downturn in the Euro Area, UK, and/or US could still have a negative impact on the Asia region.

M.F.

Sources used:
World GDP Charts
http://www.tradingeconomics.com/World-Economy/GDP-Growth-Rates.aspx
Shanghai: World's Busiest Container Port
http://www.chinadaily.com.cn/china/2011-01/08/content_11813033.htm