After a deep recession for much of 2009, emerging data indicates economic growth is showing respectable signs of life in several key markets. With the International Monetary Fund’s global GDP growth projected to approach 3 percent in 2010, analysts agree Asia and the U.S. will be among the first to welcome stronger growth in the coming months.
For Georgia’s ports, our expectations for 2010 remain cautiously optimistic. Although the Port of Savannah would certainly welcome a return to double-digit growth, our expectations are for marginal improvement over 2009.
Future long-term U.S. trade growth will again be dominated by Asia. Constituting 70 percent of Savannah’s throughput, Asia remains the strategic focus of retailers sourcing in Northeast, Southeast, and South Asia. As consumer spending slowly builds, although not to the same levels of the boom years, we expect retail imports to gradually rise over the next 24 to 36 months.
The recovery of the dollar will likely be long and drawn out, helping boost U.S. exports over an extended period of time.
U.S. farmers are accepting the challenges and opportunities of meeting global demand by exporting unprecedented tonnage by container and bulk via each coast. For the foreseeable future, be prepared for U.S. agri-product exports to have a bigger role in port infrastructure planning and investment.