Global Markets on the Rebound
What's more, the dollar's decline, though not ideal, is helping U.S. businesses selling overseas.
Global markets have been rebounding more quickly than the U.S., according to Adam Fein in the recent MDM Webcast, the 2010 Economic Forecast for Wholesale Distribution (order the full presentation/recording in the MDM Store). Fein cited an International Monetary Fund report, which showed that emerging and developing economies such as China and India "never went into a true recession."
"That has been a very significant driver for American manufacturers," Fein said. In the boom period, he said, exports were a big driver of growth, growing to more than 8.5% of the U.S. gross domestic product.
Though not good news overall, the dollar’s decline is actually helping durable goods manufacturers right now; durable goods manufacturers are the primary exporters of goods from the U.S., and a weak dollar makes U.S. exports more attractive.
Here’s an MDM article from 2007 when the U.S. dollar was also in decline; the article looks at the impact on U.S. importers, U.S. exporters, and Canadian distributors who buy from the U.S
About the Author
Leave a Reply
Sign Up for the MDM Update Newsletter
The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.