Have a look at the cover (and lead story) in this week’s Economist. The GDP growth gap between emerging Asia and the G7 is expected to widen to a record nine percentage points this year. While U.S. fiscal stimulus has yet to do little more than make already negative economic data less negative, the initiatives adopted overseas do seem to be gaining much more traction. On an annualized basis, Chinese real GDP expanded at a 15% annual rate, South Korea by nearly 10%, Singapore by 21% and Indonesia by 5%. That is remarkable. It is not only government spending and fixed investment leading the charge, but so are consumers — up at a 14% annual rate in Korea in 2Q and by 11% in China.
--- Rosenberg, 8.17.09