Other analysts and researchers concurred. Burgeoning China would lead Asia. The European Union, led by common currency eurozone countries, would lead Europe and the Middle East / Africa. Together, they would provide some spin-off economic benefits for Latin America, at the same time that Brazil / Argentina / Mexico would continue to drive economic development in the Americas.

Defaults raise questions

However, with the revelation of additional subprime defaults and accompanying asset losses, it's becoming more likely that the U.S. may have to cope with something more than a conventional, cyclical economic slowdown to 1.8-2.2% GDP growth in 2008. That fact, combined with high oil prices, a European economy slowing on a strong euro at $1.45-1.50 and concerns about possible slowing of Japan's economy, have caused some economists and analysts to question, or at least critique, the "decoupling" or rest-of-world-can-grow-alone thesis.

With the U.S. slowing and developed Europe pinched by a strong euro, critics now ask whether non-traditional growth engines -- China, Brazil / Argentina / Mexico, Canada, East Europe and the Middle East -- can indeed provide sufficient capital, commercial activity and equally significant, consumer demand to maintain adequate economic growth in 2008. The non-traditional zones score reasonably well on the capital front, but critics are less-certain about commercial activity and consumer demand.

Economic Analysis: Globalization -- which includes the development of China (Asia) and emerging markets and a global expansion of the middle class -- is a powerful economic stimulus, but it's too soon to conclude that the global economy can grow at a healthy rate solely on Asian and European GDP growth. Moreover, the global economy can grow at an adequate rate, about 3.5%, even with a U.S. economic slowdown, but that assumes that U.S. mortgage/credit market defaults subside and oil prices remain tolerable -- two major unknown factors heading into 2008.