Now, we have the EU countries joining the export foray. On December 8, 2011 during an ECB press conference, President of ECB, Mario Draghi said that “if you enhance the competitiveness, you can actually count on your external demand, on your net exports”. Mr Draghi is telling that ECB now wants export driven growth for the whole Europe!
Now, let me asked you this. If every Tom, Dick and Harry wanted to export then who will be the buyer? Martians? According to recent world economic report, countries that have export driven policy are currently experiencing a slowdown in manufacturing activities i.e. reduce external demands. China latest PMI of 47~49 indicate a slowdown in factory orders. India, Singapore, Germany, South Korea, Malaysia, Brazil and many more, are all reporting a slowdown in new orders. Do you see the problem?!
How can the world economy continues to grow if everybody is selling? To me, there must be a at least an equal number of sellers and buyers. Without it, all the talks about exporting to prosperity is just meaningless.
How can the world economy continues to grow if everybody is selling? To me, there must be a at least an equal number of sellers and buyers. Without it, all the talks about exporting to prosperity is just meaningless.
