The United States is no longer the central power, and as such was saved from the looming recesion by trading with emerging countries. Analysts believe that there has been two important shifts in the growth dynamic if the global economy. The first is that emrging economies have been transformed into locomotives of the world economy, as China has accounted for about one-quarter of global growth over the past five years. The BRIC’s have accounted for almost half of global growth and all the emerging and developing economies together for about two-thirds.
Secondly, the pattern of trade has changed. Almost half of exports from emerging and developing economies are now directed towards other such economies. “While some U.S. companies may have cut jobs by outsourcing to China, think of how many more jobs they might be cutting if they were losing money or barely profitable.”
The Global Economy has evolved into an entity that relies on no single country, unlike a few years past where “The traditional relationship where the world catches cold when the U.S. sneezes’ no longer holds.” Growing infrastructure commitments by emerging countries in Africa are helping address the huge infrastructure deficit of the continent. As a result, the global economy has clearly decoupled itself from the United States and world growth is likely to approach 4 percent in both 2008 and 2009 in spite of the sharp slowdown in the united states. “China now plays a decisive role in the world economy as indicated by its dominant role in global economic growth.”
http://news.xinhuanet.com/english/2008-08/25/content_9706441.htm
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