China Tops as Asian Country Most Likely to Maintain Economic Growth

[beijingwalker]

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China Tops as Asian Country Most Likely to Maintain Economic Growth

By Bloomberg

China ranks first among 22 emerging Asian economies as the country most likely to maintain steady and rapid growth over the next five years, according to the Bloomberg Economic Momentum Index for Developing Asia.

China scored 76.2 percent in a ranking of 16 areas including economic competition, education level, urban migration, high-technology exports and inflation that measure a country’s ability to continue delivering high growth. India was second with a score of 64.1 percent followed by Vietnam at 61.9 percent. Timor-Leste was last at 25.3 percent.

The index suggests China and India’s economic surge is durable and will likely continue to drive global growth as the U.S., Europe and Japan lag behind. Gross domestic product in each of the top three Asian countries in the index expanded at least 5.4 percent a quarter on average throughout 2008 and 2009 while the U.S., the eurozone and Japan fell into recession.

“China has a proven track record, as they have maintained superior growth for a long time,” said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong. In particular, the Chinese government “demonstrated their ability to manage the global crisis.”

In the past 30 years, China’s economy has expanded on average by 10 percent a year as it overhauled state-owned companies and allowed more foreign investment. Among economies with annual gross domestic product above $1 trillion, India posted the second-highest growth rate after China last year, expanding by 8.2 percent in the last quarter of 2010.

[Guli Danda]

India was second..cool

[Mo12]

When were economic news allowed on the World Affairs section?

[OrionHunter]

I'm not too sure about that. China's growth is heavily dependent on its exports whereas India's is more internal market driven which means it is protected from external imbalances to quite an extent.

China in the short term will continue to have a healthy growth rate as long as Chinese exports continue at the same level. But what after that? It's possible the bubble may burst finally, leading to unimaginable consequences.

[patna_ke_presley]

China Tops as Asian Country Most Likely to Maintain Economic Growth

Please provide the news link.

[beijingwalker]

I'm not too sure about that. China's growth is heavily dependent on its exports whereas India's is more internal market driven which means it is protected from external imbalances to quite an extent.

China in the short term will continue to have a healthy growth rate as long as Chinese exports continue at the same level. But what after that? It's possible the bubble may burst finally, leading to unimaginable consequences.

China's domestic market is far more robust than India's

[SpArK]

Congrats to India.

And yes...Congrats to China too.

[beijingwalker]

“China has a proven track record, as they have maintained superior growth for a long time,” said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong. In particular, the Chinese government “demonstrated their ability to manage the global crisis.”

30 plus years already,I really doubt that any other countres had ever done this fast growing rate for this long.

[Doctor09]

Congrats China

[IndoCarib]

China's domestic market is far more robust than India's

thats not true. Here ....

Different paths

The two countries together provide a diverse portfolio of growth drivers for the world economy as growth dynamics are very different in the two countries.

While China's growth is fuelled by public spending, India's is largely private investments-led.

While China's growth is dependent upon global markets, India's growth is largely domestic markets-driven.

India's growth prospects, therefore, are more sustainable than China's, but China's growth is faster than India's.

BBC News - Viewpoint: Global significance of India-China ties

[beijingwalker]

thats not true. Here ....

Different paths

The two countries together provide a diverse portfolio of growth drivers for the world economy as growth dynamics are very different in the two countries.

While China's growth is fuelled by public spending, India's is largely private investments-led.

While China's growth is dependent upon global markets, India's growth is largely domestic markets-driven.

India's growth prospects, therefore, are more sustainable than China's, but China's growth is faster than India's.

BBC News - Viewpoint: Global significance of India-China ties

Indian scholars?let's use the facts and figures to speak

India Loses More Ground on China
October 20, 2011, 9:00 AM IST

By Margherita Stancati

There were only a few people to begin with who really thought India’s economic growth rate would outpace China’s – at least anytime soon.

Now, those voices are likely to be fewer and weaker.

As China’s economic growth hovers close to double digits, India is having to admit its 9% Gross Domestic Product expansion goal for the year ending March 31 is now pretty unrealistic.

“Let me not hide the fact that I have been disappointed by our growth performance over the last few months. It is evident that India’s growth rate in 2011-12 will be less than what we were expecting in February when I presented the Budget,” Finance Minister Pranab Mukherjee said in a speech during a media event on Wednesday.

In February, the finance minister said India’s economy was on track to expand 9% in the year through March 2012. On Wednesday, he hinted that 8% – or less –was more like it. That’s what “most observers” are expecting, Mr. Mukherjee said. He stopped short of making a formal growth forecast, saying he’ll share that with Parliament in December.

Those observers would appear to include the World Bank, which in a report released Wednesday echoed Mr. Mukherjee’s fears: it said that India’s economic growth is likely to slow from 8.5% last year to between 7% and 8% over the next two years. In other words, all those GDP headlines are likely to include a 7, or 7 point something, not the 8 or 9 or even 10 of the government’s dreams.

So what’s to blame? In his speech, Mr. Mukherjee said global financial woes – from high oil prices to the volatility of other commodity prices and capital flows – were largely responsible. Monetary policy tightening and interest rates, a response to the country’s uncomfortably high inflation, didn’t help either, he noted. These are points the World Bank also covered.

If –as the finance minister put it – “the dark clouds [that] have gathered in the global skies” are to blame, why isn’t China also suffering?

It appears that Beijing has done better than New Delhi at boosting domestic demand, an area that acquired greater relevance as Western countries are struggling with a prolonged economic slowdown.

“With the slow growth expected in core OECD countries, India’s GDP growth will have to rely on domestic growth drivers,” the report said. To do this, it said major structural reforms aimed at achieving fiscal consolidation (another big challenge for India) and at encouraging investment would be necessary. It said that “regulatory uncertainties” – ranging from environmental clearances to land acquisition laws to tax reforms – were holding back investors, an issue that is less of a problem in China. To strengthen domestic growth, it urged India to clear these up and to invest in infrastructure, among others.

China, by comparison, is now relying more heavily on its domestic demand and this is already helping its economy make up for a weaker export market.

Figures released earlier this week show that China’s gross domestic product expanded 9.1% in the quarter ended Sept. 30 from a year earlier, only slightly under analyst expectations of 9.2% growth.

The World Bank report also said that, compared to the current year, in the year through March 2011 India benefited from the strong performance of its agricultural sector, something that depends largely on a good monsoon.

Mr. Mukherjee invited his audience to look at the brighter side (rather than East.) “This is disappointing but at the same time we must not lose perspective of the global situation.”

However, China didn’t crop up in his comparison, which focused instead on debt-strapped Western countries – and their less than 2% growth.

[Rafi]

Plenty of respect to our Chinese brothers and sisters.

[IndoCarib]

[QUOTE=beijingwalker;2290811]Indian scholars?let's use the facts and figures to speak



You didnt give any facts and figures, just another article

[Roybot]

This is about half a year old report, and thread already exists.

Why do you keep posting old stuff all the time

China Tops India as Most Likely to Grow

[beijingwalker]

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a robust domestic market needs a big middle class group with huge amount of money at their disposal,that is something China has and India doenst have.

---------- Post added at 07:46 PM ---------- Previous post was at 07:43 PM ----------

This is about half a year report, and thread already exists.

Why do you keep posting old stuff all the time

China Tops India as Most Likely to Grow

any research report in this year is not considered old,I didnt see a existing post,where is it?