Global trade sees future growth
Data from major exporting economies South Korea, Taiwan and Brazil has shown that global trade grew in September, with figures up on the month before. The news has given the global economy hope that it can trade its way into recovery.
While the figures are well below 2008 levels for the corresponding period, they represent a step towards recovery. Economists also believe that government stimulus measures may have contributed and have expressed cautious optimism.
“It looks like there is a recovery in trade that is happening, but it’s too early to tell if it’s the stimulus or a real recovery,” remarked Mark Matthews, a strategist from investment bank Fox-Pitt Kelton in Hong Kong.
The tumbling US dollar has pushed prices up making export difficult for a number of countries, particularly those that compete with China, which carries a fixed exchange rate with the US dollar.
Economists also hope holiday retail spending will lift trade in the coming months.
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