India, China will lead Asia's growth: IMF

[India defense]

Even as it lowered India's growth forecast to 6.9 per cent this year from 7.1 per cent in 2011, the International Monetary Fund (IMF) Friday said led by India and China, Asia will remain the fastest growing region in the world.

In fact India's growth will rise to 7.3 percent in 2013, with growth in Asia expected to pick up this year, after slowing in the last quarter of 2011, the IMF said in its outlook for the Asia Pacific region released in Kuala Lumpur.

Similarly, China's growth after dipping to 8.2 per cent this year from 9.2 per cent in 2011, will rise again to 8.8 per cent in 2013, the 188-member Washington based watchdog of the world economy said.
The region is expected to continue growing at around 6 percent this year, before rebounding to about 6.50 per cent in 2013, the IMF forecast.

But Asian leaders now face the difficult task of adjusting policies to support stable, non-inflationary growth, IMF said.

"Calibrating the right amount of insurance to support stable, non-inflationary growth is the main near-term policy challenge," said Anoop Singh, head of the IMF's Asia and Pacific Department.

"Economic rebalancing remains a policy priority for much of Asia," he added.

Asia has continued to enjoy robust domestic demand against the background of the fragile global recovery. This has been reflected in low unemployment and robust credit growth in the region, IMF said.

Inflation expectations also picked up and so far, capital inflows into emerging Asia have rebounded in 2012. A further stabilization of global economic and financial conditions over the course of 2012 would provide a boost to the whole region. But it could also revive the threat of inflation.

The report suggests that inflation will decline modestly in 2012, averaging some 3.50 per cent.

Despite brighter prospects for the region, the report warns that financial turmoil in Europe could yet escalate and spread to Asia.

In particular, a sharp fall in exports to advanced economies and a reversal of foreign capital flows would severely impact activity in the region, IMF said.

The report also cites higher energy prices as a risk to activity, and a source of difficult trade-offs between inflationary pressures and budgetary risks from energy and food subsidies.

India, China will lead Asia's growth: IMF - The Times of India

 

[ChineseTiger1986]

Asia will become the center of the 21st century for sure.

 

[India defense]

If India and China solve their issue ....we can lead world's growth in no time

 

[Papa]

If India and China solve their issue ....we can lead world's growth in no time

If anyone will solve their problems, certainly will lead the world.

 

[JanjaWeed]

Looks like China & India will be leading IMF too in the future as major contributors!!

 

[Android]

If we don't end our hostility now i can sense a new cold war approaching

 

[T90TankGuy]

the fact is that its the media which blows thing out of proportion . the two govt of India and china usually dont say thing against each other.

 

[RISING SUN]

India, China lead world economic growth: StanChart
New Delhi: Emerging economic giants India and China are leading the global economy on a ‘32-62-72’ growth path, Standard Chartered Bank’s chief economist has said -- using the numeric phrase for evolving economic size of the world.

“Despite the crisis in the West, the world economy continues to grow, led by the likes of China and India. ‘32-62-72’ is the phrase that I use to describe this,” says Gerard Lyons, chief economist of the global banking giant. Explaining the phrase, Lyons said that the world economy had grown from $32 trillion in 2000 to just under $62 trillion on the eve of the crisis and, in nominal terms, it is set to reach $72 trillion at the end of this year.

“The shift in the balance of power continues to make the global economy bigger and, in doing so, provides markets for countries and firms in the West to sell into,” Lyons has written in an internal publication of the bank, Standard Chartered Asia Focus. While acknowledging the contribution of emerging countries like India and China in the global economic growth, he also noted that there was a need to implement reforms and to move up the value curve in the developing economies. “This period of global change is also an opportunity for countries to make structural changes, whether it be the need to address low productivity rates in a number of Western economies, or the need to implement reforms or move up the value-curve across the emerging world,” he said.

“This group (emerging world) is not immune to what happens elsewhere but is much better able to cope. Yet, in just looking at what has happened recently across economies as diverse as India, China, Brazil or Indonesia, it is clear that while the longer-term outlook is positive, there will be setbacks along the way.

“Sometimes these may be significant, other times they may be easier to manage. Thus the key is to focus on a combination of economic fundamentals, policy and confidence,” he said. While Lyons did not mention any specific cases, concerns have been raised in the recent past about a slow pace of economic reforms in India, including in the areas of foreign investment rules and taxation.

“In this global environment it is important not to lose sight of a number of key factors. One is that there are still considerable risks out there; hence the fear of a ‘perfect storm’ in 2013. “Secondly, the economies in the West are still finding it hard to work off all the excesses of the past, and these challenges are not being helped in Europe by the slow and, at times, stubborn political process,” Lyons said.
India, China lead world economic growth: StanChart - Economy and Politics - livemint.com

India, China lead world economic growth: StanChart
New Delhi: Emerging economic giants India and China are leading the global economy on a ‘32-62-72’ growth path, Standard Chartered Bank’s chief economist has said -- using the numeric phrase for evolving economic size of the world.

“Despite the crisis in the West, the world economy continues to grow, led by the likes of China and India. ‘32-62-72’ is the phrase that I use to describe this,” says Gerard Lyons, chief economist of the global banking giant. Explaining the phrase, Lyons said that the world economy had grown from $32 trillion in 2000 to just under $62 trillion on the eve of the crisis and, in nominal terms, it is set to reach $72 trillion at the end of this year.

“The shift in the balance of power continues to make the global economy bigger and, in doing so, provides markets for countries and firms in the West to sell into,” Lyons has written in an internal publication of the bank, Standard Chartered Asia Focus. While acknowledging the contribution of emerging countries like India and China in the global economic growth, he also noted that there was a need to implement reforms and to move up the value curve in the developing economies. “This period of global change is also an opportunity for countries to make structural changes, whether it be the need to address low productivity rates in a number of Western economies, or the need to implement reforms or move up the value-curve across the emerging world,” he said.

“This group (emerging world) is not immune to what happens elsewhere but is much better able to cope. Yet, in just looking at what has happened recently across economies as diverse as India, China, Brazil or Indonesia, it is clear that while the longer-term outlook is positive, there will be setbacks along the way.

“Sometimes these may be significant, other times they may be easier to manage. Thus the key is to focus on a combination of economic fundamentals, policy and confidence,” he said. While Lyons did not mention any specific cases, concerns have been raised in the recent past about a slow pace of economic reforms in India, including in the areas of foreign investment rules and taxation.

“In this global environment it is important not to lose sight of a number of key factors. One is that there are still considerable risks out there; hence the fear of a ‘perfect storm’ in 2013. “Secondly, the economies in the West are still finding it hard to work off all the excesses of the past, and these challenges are not being helped in Europe by the slow and, at times, stubborn political process,” Lyons said.
India, China lead world economic growth: StanChart - Economy and Politics - livemint.com

 

[Chinese-Dragon]

If India and China solve their issue ....we can lead world's growth in no time

What does that have to do with anything?

We're already trading and that is enough for growth prospects. Being "friends" doesn't confer any extra economic benefits, nor will it solve any of our pressing economic concerns.

We need to solve our own problems first.

 

[dott]

Asia will become the center of the 21st century for sure.

Many people just think about asia. they forget the fact that there is another continent with 1 billion people waiting to come out of poverty and is hungry for growth. in my understanding asia along with africa will be the centre of the world in 21 century.

both govts in india and china know this. Indian investments in africa crossed 90 billion while china has over 25o billion. asia just doesnt need to rise but also be proactive and promote inclusive growth.

 

[Skull and Bones]

Many people just think about asia. they forget the fact that there is another continent with 1 billion people waiting to come out of poverty and is hungry for growth. in my understanding asia along with africa will be the centre of the world in 21 century.

both govts in india and china know this. Indian investments in africa crossed 90 billion while china has over 25o billion. asia just doesnt need to rise but also be proactive and promote inclusive growth.

Majority of the central African countries don't even have a functioning government, they cannot be defined as countries in general term, they're just a landmass dictated by localized feudal lords where people live, suffer and die.