Globalization: On Asia We Can Trust

If we believe the headlines the world is following Europe into a new recession. But the facts show a much more benign picture of the global economy.

Today we got news that the industrial production in China is reaccelerating. Bloomberg reported that  Chinese manufacturing increased 12.8% in December from a year earlier, more than the median estimate of 12.3% in a Bloomberg survey and a 12.4% increase in November (bloomberg).
On Sunday we learned that the industrial production in India rebounded to a growth rate of 5.9% in November (minus 4.7% October  bloomberg). Today we also were informed that the exports of Singapore rose in December driven by pharmaceutical shipments and that the Japanese government maintained its assessment that the economy is still picking up from the March earthquake (bloomberg).

Last week people in  Beijing were rioting. Not, because their children don´t get enough food; no, they got angry because the newest Apple  gadget, the iPhone 4S. was sold out (bloomberg).

These data show that Asia, the growth engine of the global economy, isn`t damaged by the European mess, instead it`s gaining steam. The new strength in  Asia should also rekindle the economies in U.S. and Europe. Today we heard that the Empire State factory index, an early indicator for manufacturing in the U.S.,  jumped to 13.5 in January (December 8.2  marketwatch), a sign that the U.S. economy might gather steam too.