Asia Passes Europe as Top Export Destination, For 1st Time Ever

More

One way the Greek debt crisis could impact the United States is through exports. If investors flee the euro, it will lose value in relation to the dollar, which will make American goods less attractive to Europeans.

But here's some interesting news from the Commerce Department (via WSJ): "For the first time in recorded history, the moving 12-month sum of $227.6 billion of U.S. merchandise exports to Asia's emerging market countries surpassed the... $223.7 billion of such exports to the European Union."

US exports to Europe have already fallen 14% year-over-year in the first three months of 2010. Exports to Asia grew by nearly 4% in that time. With the crisis in Greece, this is welcome news  because stronger Asian demand could replace some demand lost to a currency crisis in Europe. But as Asian countries rise on our list of top importers, we should pay more attention to any fiscal and monetary policies that could slow the Asian consumer:

Asian economies are growing so strongly at the moment that China in particular is scaling up efforts to damp inflation through tighter monetary policy. While a "soft landing" outcome in which the Chinese economy slows to say at 8% annualized growth rate would be ideal, a harder landing whereby higher interest rates slow demand precipitously can't be ruled out. Indeed, it's one of the top risks to the global growth outlook. Though much attention has been focused across the Atlantic lately, it's actually the Pacific Rim which perhaps should merit closer scrutiny.
Jump to comments
Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Get Today's Top Stories in Your Inbox (preview)

CrossFit Versus Yoga: Choose a Side

How a workout becomes a social identity


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

CrossFit Versus Yoga: Choose a Side

How a workout becomes a social identity

Video

Is Technology Making Us Better Storytellers?

The minds behind House of Cards and The Moth weigh in.

Video

A Short Film That Skewers Hollywood

A studio executive concocts an animated blockbuster. Who cares about the story?

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Video

What Is a Sandwich?

We're overthinking sandwiches, so you don't have to.

Video

Let's Talk About Not Smoking

Why does smoking maintain its allure? James Hamblin seeks the wisdom of a cool person.

Writers

Up
Down

More in Business

Just In