Is merchandise trade in trouble?

Although the Asia-Pacific region as a whole is the largest trading region of the world – having captured almost 40% of global exports and imports – recent figures on the merchandise trade performance of the region’s economies fail to inspire much confidence. China faces a sharper than expected slowdown in economic growth, a debt crisis and heightened volatility in financial markets. Coupled with continued economic stagnation in demand markets, there are substantial downside risks for “Factory Asia”. The relatively strong performance of the Indian economy is not easing these worries as India’s market remains only selectively integrated in to the region.

Related Subject(s): International Trade and Finance