The main driver of the continued expansion in global apparel consumption and in cotton use has been the unparalleled growth in consumer spending in Asia, led by China and India. In 2007, over 75 percent of China´s ever-expanding textile and apparel output will be consumed internally, and that percentage will reach 90 percent in the next five years. China´s retail sales are again set to double by mid-2010 at the current growth rate. It is not only China experiencing this growth -- India is also going through a retail revolution, with its economy growing just below the rate of China. The remainder of the Asian region is also experiencing a surge in retail activity and consumer spending.

The Asian Development Bank (ADB) has just revised its forecast for 2007 and 2008. It has revised upward its 2007 forecast higher for most of the Asian region and predicted that 2008 growth would continue strong. It cited a continued expansion in consumer spending as one of the driving forces in its forecast. The ADB has forecast total Asia (not including Japan) 2007 economic growth would reach 7.6 percent, which is up from 7.1 percent in its previous forecast. China would continue to lead the region with growth of 10 percent, which is up from its previous forecast of 9.5 percent but down from 10.2 percent in 2006. India and Vietnam would be leaders, outside of China. India´s GDP is forecast to grow 8 percent, which is up from its previous forecast of 7.8 percent, and Vietnam´s GDP growth would reach 8.3 percent. Strong growth is forecast for the rest of the Asian region, except for Thailand, where GDP expansion is forecast at only 4 percent.

Source: globecotnews