The United States economy should begin a turnaround later this year as tax cuts and lower interest rates strengthen consumer confidence, according to trade consultant Harald Malmgren.
Mr Malmgren, who served as a trade negotiator for former US presidents Richard Nixon and Gerald Ford, said the US downturn was having a domino-effect on the global scene.
'We do have weakness in the economy right now,' he said.
'Households are losing confidence and investors are being battered by the Nasdaq.
'This is going to pull down the exports of East Asia because we are the principal market and our rate of growth in imports is always immediately linked to the [US] domestic rate of growth.'
Mr Malmgren said consumer spending in the US was likely to remain weak for 'a couple of quarters'.