April 14, 2008
One reason the U.S. recession could be mild is that the rest of the world is expected to keep growing, particularly developing countries such as Brazil, Russia, India and China (the BRIC countries). Global growth coupled with the weak dollar will boost U.S. exports, narrow the trade deficit and add about a percentage point of growth to GDP this year even as other sectors of the U.S. economy downsize. Export growth will support demand for manufacturing space, though vehicle and construction-related manufacturers will continue to struggle.
Source: International Monetary Fund
Robert Bach currently serves as senior vice president of research & client services at Grubb & Ellis Company in Chicago, Illinois and he can be contacted at (312) 698-6754. For more information about Grubb & Ellis Co., go to www.grubb-ellis.com.