Trade & Trade

Some observations of the current economic recovery:

- In the industrialized countries, the increase of the exports has been more significant than the increase of the imports.

- In the developing countries, the increase of imports has been risen more than the amount of exports.

This is due to the relatively less important decrease of the exports for the latter.
Indeed, the higher revenue elasticity for expensive good explains that rich countries will continue to buy cheaper goods and delay their buying of goods as household appliance, cars, houses...

This is one of the explanation of the relatively short impact of the crisis for countries as Brazil or China.