With India, China leading, Asia emerges as global economic hub

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With India, China leading, Asia emerges as global economic hub ​

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Arun Kumar | 16 Jun, 2010

With India and China leading, Asia's economy will be as large as that of the US and Europe, accounting for more than a third of global output in the next five years, the IMF projects.

"China and India are leading the way, but the phenomenon is by no means limited to these two countries," writes Anoop Singh, the International Monetary Fund (IMF) director for the Asia and Pacific, in the Finance & Development Magazine released Tuesday.



Underlining the region's emergence as a global economic powerhouse as it leads the way out of global recession, he says "Asia's economic importance is unmistakable and palpable".

"Based on expected trends, within five years Asia's economy, including Australia and New Zealand, will be about 50 percent larger than it is today in purchasing-power-parity terms, account for more than a third of global output, and be comparable in size to the economies of the United States and Europe."

By 2030, Asian gross domestic product (GDP) will exceed that of the Group of Seven major industrial economies (G-7), Singh says, suggesting Asia is moving into a leadership role in the world economy.

"It is only natural, then, for Asia's voice to become increasingly influential in global economic and financial discourse," he says, noting already, six of the Group of 20 major economies (G-20) are from the Asia-Pacific region.

Asia accounts for just over 20 percent of IMF voting shares, and this is certain to rise as the IMF pursues reforms to bring countries' voting shares more closely in line with their role in the world economy, Singh predicts.

Although Asia was not heavily exposed to the kinds of toxic securities that caused problems elsewhere, the region is an important participant in world trade, and its exports were hurt by the collapse in demand from advanced economies.

"The impact of the external shock was mitigated for countries with large domestic demand bases, such as China, India, and Indonesia, and some of the commodity producers, such as Australia, but the more export-oriented economies experienced particularly sharp downturns," he noted.

But "Asia's time has come", says Singh noting "its role in the world economy continues to grow-both in world trade and finance and in economic governance, through institutions such as the IMF - and it will grow further".

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[johnny boy]

why not after we are the old world.

 

[durgs360]

We all know that China and India are marching ahead. But one blogger known as Riaz Haq would beg to differ ! I suppose this will drag him into this thread !!

 

[contender]

Need a break from all your dreams?


India inflation rate rises to two year high
14 June 2010

Surging inflation is eating into consumers' spending power

Indian inflation has risen to a two-year-high, raising the possibility of interest rate rises.

The wholesale price index rose to 10.16% in May, the highest since 2008.

Rising food and fuel costs have pushed the rate well above forecasts, which were nearer 9%. The government says prices will come down soon.

The rise in the inflation rate comes after India recorded its fastest growth in manufacturing in at least 15 years in April.

Unlike most countries, India calculates inflation on the wholesale price of a basket of 435 basic goods, which means actual prices paid by the consumer are much higher.
BBC News - India inflation rate rises to two year high