South America is Back on Track

摘要

After a temporary respite, things are picking up again in South America, with some countries becoming high growth markets. Major trade markets and emerging markets are inextricably linked. One reason is that the top trading nations are often the leading export markets for the emerging economies. The U.S. and EU being the top two consuming markets, the economic conditions there affect the rates of growth for emerging nations. That said, Ken Bloom, GEO of Inttra Inc., observes that the run up to the Asian Spring Festival season in 2013 has been positive. Prior to the Chinese New Year when plants close for a prolonged holiday, the markets that consume the exports of China and other Asian countries will build inventories based on current and expected demand. In 2012, there was hardly a run up, he says. This year, he describes it as "very strong." The market is starting to pull more demand from China, he continues. Looking through the lens of the historic performance around the Chinese New Year, that signals an economic pickup. But, cautions Bloom, the Asia-Europe market is "still hurting." Europeans don't have the extra cash for growth in consumption, so that leaves the U.S. market as "the engine that could."