US and EU dominate global consumption

Asian spending.jpgInteresting new research from Prof Nouriel Roubini provides some perspective on relative levels of consumer spending around the world:
• US private consumption accounted for 16% of total global output in 2008
• It was valued at $10trn, just ahead of European consumption at $9trn
• Total Asian consumption was under $5trn
• China’s consumption was $1.6trn, about equal to the UK
• India’s consumption was 56% of its GDP, China’s was only 38%
These numbers highlight the fact that Asian economies have been over-focused on supplying exports to the West, rather than domestic needs.
This means, as Deutsche Bank’s Markus Jaeger notes, that Asian domestic demand can “only partly offset the likely permanent reduction in foreign demand“. And Jaeger adds that even fast Asian domestic growth can provide “little support for G7 and global demand“.

3 thoughts on “US and EU dominate global consumption”

  1. Restocking continues, but consumers become more frugal

    There are clear signs in the above chart that the inventory cycle has turned positive again, as customers restock. Globally, data from the American Chemistry Council shows chemical production now down 10.5% versus last year, after being 13.4% down in…

  2. Global chemicals volume back to 2006 level

    The probable ending of the destocking/restocking phase is a good moment to look back at what has happened to chemical industry volume in recent years. The chart, based on data kindly supplied by Kevin Swift of the ACC, shows how…

  3. US consumers enter the ‘new normal’

    The US consumer accounts for 16% of total global GDP, with a value of $10trn. By comparison, total Asian consumption is under $5trn. China’s consumption in 2008 was just $1.6trn, about equal to the UK. Changes in US consumer behaviour…

Leave a Comment