What's new

Indian economy expands more than China in July-September: HSBC

karan.1970

BANNED
Joined
Jan 3, 2010
Messages
14,781
Reaction score
-20
Country
India
Location
India
Indian economy expands more than China in July-September: HSBC - The Times of India

NEW DELHI: Economic growth in emerging market economies slowed in the July-September quarter on poor performance by the manufacturing sector, but India expanded more than China, an HSBC survey said.

The HSBC Emerging Markets Index (EMI) slipped to 52.1 in the third quarter this year, from 53.2 in the April-June period.

A relatively better performance from the services sector was offset by the poor performance of the manufacturing sector, as global demand softened.

However, among the big-four emerging markets, expansion in India and Russia were better than Brazil and China, HSBC said.

Although the HSBC EMI, which is based on PMI (Purchasing Managers' Index) surveys conducted across the emerging markets, stayed above the 50-mark that differentiates growth from slowdown, HSBC noted that the global economic condition is posing strong headwinds for them.

"Emerging economies are being impacted by the misery of the developed world as the deteriorating global trade cycle, weaker external demand and falling new export orders hit manufacturing output and the services outlook," HSBC's chief economist for Central and Eastern Europe and sub-Saharan Africa Murat Ulgen said.

New export orders for emerging markets manufacturers fell for the third successive quarter across the world's emerging markets, representing the strongest decline since the first quarter of 2009.

"Emerging Asia is facing a set of tough challenges, the slump in global manufacturing, accentuated by a sharp inventory correction, will restrain industrial activity at least until the beginning of 2013," HSBC co-head of Asian Economic Research Frederic Neumann said.

Going forward, although manufacturing was mainly responsible for third quarter weakness, the longer-term outlook for the services economy deteriorated to its lowest level since the survey began in 2005.

Though the level of gloom about the future business outlook moderated among the big-four emerging market economies, Indian counterparts were the most confident, the HSBC survey said.

Neumann further noted that the monetary stimulus from the West will gradually help ease local financial conditions further, even without any additional rate cuts and the "region should slowly regain its growth momentum through the course of 2013".

http://www.defence.pk/forums/world-...more-than-brazil-china-june-quarter-hsbc.html
 
. . . .
The title is a little deceiving, PMI doesn't mean the actually growth but nevertheless my congratulation to India.

how big is the public sector in China as compared to the private sector.?


Nevermind ....mulitple reports say less than 40% close to 35%

tht evidently means tht PMI represents 60- 65% of all Chinese economic growth activity.
 
. .
That does not call for Celebration . They Have been growing more than us Constantly for a couple of Decades . Lets hope we continue to do it in-spite of Massive Corruption problem that we have .
 
.
I'd rate Chinese prospects much better than India, because their leaders analyse the foreseeable future and make reforms to get maximum benefits out of it, while we talk about bringing in minimal reforms only when our backs are stuck in the wall.
 
.
how big is the public sector in China as compared to the private sector.?


I don't have such data but I'll guess the private sector is at least 10 times of the public sector. Even thought the SOE (state owned enterprises) get all the publicity, but it's the private sector ( mom & pops that employ less than a few hundreds) that support majority of the work force.
 
.
I don't have such data but I'll guess the private sector is at least 10 times of the public sector. Even thought the SOE (state owned enterprises) get all the publicity, but it's the private sector ( mom & pops that employ less than a few hundreds) that support majority of the work force.

lol isent China supposed to be all about public sector financing?

but if what u say is hypothetically true then PMI is even more relevant to China than India cus its essentially surveys expansion in primarily the private environment and not the public one.
 
.
lol isent China supposed to be all about public sector financing?

but if what u say is hypothetically true then PMI is even more relevant to China than India cus its essentially surveys expansion in primarily the private environment and not the public one.


Not really, the PMI is a survey of medium to large operations. In China, like everywhere in the world, there are a lot more companies that are smaller and are not included in the survey. I'm not say the PMI is not an indicative the trend of the economy and in fact it does but it reflexes certain segment of the economy, not the whole economy. Any number above 50 is as good as any.

Even in manufacturing alone, some use more raw material than the others. China has been in the process of up level her manufacturing sector, in the SOE st least for the last few years and that's why you see their PMI hasn't strong for the same period of time. There are more higher end products coming now than before, hence the less use of raw materials. Any industrial nation that is on the uptick in its economy usually has a PMI of slightly above 50 and a number of 53 and above usually means a burst of activities or use high volume of material of lower quality products.
 
.
I'd rate Chinese prospects much better than India, because their leaders analyse the foreseeable future and make reforms to get maximum benefits out of it, while we talk about bringing in minimal reforms only when our backs are stuck in the wall.

Soooo true !!
I wish Manmohan singh and Narendra modi were working for the same party so that modi can keep a check on people like that dian mamata and Singh can move with his reforms as early as possible , just like the Chinese way .
 
.
Soooo true !!
I wish Manmohan singh and Narendra modi were working for the same party so that modi can keep a check on people like that dian mamata and Singh can move with his reforms as early as possible , just like the Chinese way .

Lol, you think so? Indian politics is an extravagant show of personal ego. One party cannot just sit in the corner let other do some groundbreaking reforms and score brownie points among the masses. And lets not talk about that crackhead Mamata, she knows crap about economics and are idealized economic policies are even more close ended than commies.
 
.
Hope GDP growth rate would improve.
Also take down inflation, 5% inflation is too high. Start some big Infrastructure project sounds like pretty good option. Take some loans, once the economy is recovered back, these project will give feedback to business.
 
.
Soooo true !!
I wish Manmohan singh and Narendra modi were working for the same party so that modi can keep a check on people like that dian mamata and Singh can move with his reforms as early as possible , just like the Chinese way .
Once Chinese Govt wants something, they will use all methods to do it. But in democracy, not that much possible.
 
.

Pakistan Affairs Latest Posts

Back
Top Bottom