All things considered, the neighbouring Asian countries – owing to their geographical proximity and strong economic links – are likely to feel the negative effects more severely than the western industrial nations. We are seeing a clear correction in the industrial sector, in which excess capacity is being reduced. This is also confirmed by German exporters and producers on site.
Growth in trade and services still seems to be good, however. Retail sales are clearly increasing and many “New Economy” firms are rushing towards ever new records in sales and profits. Consumer demand still appears to be intact. Risks exist on account of high levels of debt in local government and state-owned enterprises.