By Manik Mehta
Malaysia’s most important export market in the developed world, the United States of America, which buys a wide range of Malaysian products, is showing signs that its economic recovery process is finally stabilizing, as economic pundits say.
The most comforting and visible sign of a spark that could stabilize the economic recovery process, is provided by the latest unemployment report which shows that the nation’s jobless rate fell to a three-year low as some 200,000 Americans could successfully find jobs.
Consumer spending is the backbone of the economic drive in the nation; consumer spending can increase or decrease depending on the income earning of the American.
In the past three years, unemployment rate in the U.S. has been stubbornly high, a situation that has baffled and confounded most experts, some of whom, at one point last year, even predicted a double-dip recession.
When there is high unemployment, consumers tend to spend less. This, in turn, has a strong inhibiting effect on economic growth, while importers tend to be wary of ordering merchandise from their overseas suppliers, fearing they will not be able to dispose off the inventory.
The Malaysia External Trade Development Corporation (Matrade) promotion offices in the United States have been closely monitoring the economic developments, keeping a close eye on the unemployment levels which continued to remain high even though the recession had, technically speaking, ended in summer 2009.