Asia suffered an unparalleled drop in demand from the U.S. consumer during the economic downturn. Yet most Asian economies are rebounding strongly already. Korea’s industrial output just spiked 11% for example. Intra-Asia trade is growing and the International Monetary Fund (IMF) expects Asian growth to hit 5.75% in 2010 after growing 2.75% this year.
If this can happen despite the container trade declines shown below, it proves that Asia, with the help of local government stimulus of course, has indeed become far less dependent on the U.S. consumer than it used to be. The chart below shows consumer confidence plotted against Trans-Pacific Eastbound trade (Asia-US trade).
American demand is still enormous and important, but it can be compensated for. Hopefully Asian nations will stop propping the dollar as this becomes more clear.
Charts via Charles de Trenck, of Transport Trackers.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.