Schuller: World economy waits for sleeping beauty awakenings

Sunday morning thoughts. We have Asian economies leading the current stabilization of our global economy. Obviously fuelled by huge stimuli packages in total terms and also in a % of their GDP. Deployable industries and projects are smaller than liquidity provided. Asset price inflation in equities and real estate are one indication of the overambitious governments of that region. At the same time, especially Chinese economic data is strongly politically spinned. Bottom line, their economies might expand significantly, but most probably not at the high pace shown in the data. APEC´s and ASEANs ambition of becoming more independent from Western consumers is understandable and worth to be supported. A more balanced world economy with a plurality of strong domestic demand centres would not mean less globalization. To the opposite it would facilitate global economic and political integration by building it on a more solid foundation.

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Markus Schuller