21 sats \ 3 replies \ @riberet19 6 May \ parent \ on: China Surpasses EU and US as Dominant Partner for Developing Nations econ
Do you think this could happen in the medium or long term?
Either... both.
Trade flows scale proportionally with economy size and inversely with distance. As Europe shrinks economically, their trade partners will also shrink, but to a lesser degree.
Over time, economies closer to Asia will grow more and those closer to Europe will shrink.
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This makes a lot of sense, if the outlook continues like this, I can see Europe progressively weakening until there is a breaking point, I think we are in for quite a bit of pain.
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They might just be at a trade disadvantage, by virtue of being further away from Asia, and that might put downward pressure on their economies.
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