The East Saves The West?

by Patrick Appel

The Economist checks in on Asia's recovery:

Western populists will no doubt once again try to blame their own sluggish performance on “unfair” Asia. Ignore them. Emerging Asia’s average growth rate of almost 8% over the past two decadesthree times the rate in the rich worldhas brought huge benefits to the rest of the world. Its rebound now is all the more useful when growth in the West is likely to be slow. Asia cannot replace the American consumer: emerging Asia’s total consumption amounts to only two-fifths of America’s. But it is the growth in spending that really matters. In dollar terms, the increase in emerging Asia’s consumer-spending this year will more than offset the drop in spending in America and the euro area. This shift in spending from the West to the East will help rebalance the world economy.