Global economic leaders keep pointing to an pickup in the global economy, and exporters are beginning to ship products again. Yet recent economic indicators show that the pickup may be a little one-sided. The American economy seems to be moving again, and this benefits global suppliers and exporters around the globe, but it seems that most are relying solely on the Americans to fuel their economic success.
America Reporting High Consumer Spending
In January, American consumers had a very positive outlook on the economy and Global Shipping. Cheap oil has caused people to break free from the spending constraints of the past years, and the economy is growing again. Consumers are being more careful with how they spend their money, trying to borrow less and plan better, but the economy is moving.
The Downside to the American Economic Growth
Why is this a bad thing for global trade? Unfortunately, the rest of the world is not yet picking up at the same rate as America. Many countries are relying almost entirely on exports to American to fuel their own economic growth. This has created an imbalance in the global economy.
While an imbalance, temporarily, is not a problem, it could lead to the financial situation of the 2000s, which led to a global downturn. If Americans start to dip into the financial recklessness and excessive borrowing, they will stop spending again. Countries and exporters relying solely on the American consumer will find themselves in trouble if this occurs.
Will it occur? Only time will tell. For those exporters who wish to protect themselves, finding a better balance and not relying entirely on the American consumer would be a wise move.