Well here is a sector of the global economy that is definitely not in a down turn:

Agence France Presse quotes naval consultancy AMI International, whose analysts are forecasting that Asian states will spend $60 billion to modernize their navies in the next 5 years. That amount is very similar to the USA’s forecast spend over the same period. If the USA is excluded from calculations, it’s more than the forecast combined spend among all NATO states.

So, where’s the focus expected to be? And who is expected to lead?

AMI International VP Bob Nugent sees a focus on submarines, frigates and aviation-capable ships, as Asian countries begin to build navies for “blue water” use around the globe rather than focusing on local patrol.

China, Japan, and South Korea are expected to lead spending. South Korea has taken steps to maintain its world-class shipbuilding and shipping capabilities despite the global downturn – capabilities that have become a national asset, translating into on-time, on-budget delivery of very advanced navy ships.  [Defense Industry Daily]

If anyone is concerned don’t be because the US is planning on spending just as much in the next five years to off set the Asian naval growth:

The world’s biggest spender will remain the United States at a little above 60 billion dollars between now and 2014, Nugent said here on the eve of IMDEX Asia 2009, Asia’s top maritime defence show.

Non-NATO European countries led by Russia are forecast to spend 11 billion dollars on new naval capabilities in the next five years, he added.  [Defence Professionals]

As we have seen with the effort to patrol against Somali pirates the growth of Asian navies has actually been benificial.