While there remains much optimism in the potential of emerging markets, the truth is their economies are still largely dependent on the performance and health of developed markets. By most accounts, emerging markets are export-driven, and highly sensitive to currency movements and commodity prices. Given the weak slim chance of global recovery this year, what is the fate of emerging markets?
What’s wrong with the United States’ economy? Ask a Harvard graduate and the answer would most likely describe the loss of the country’s competitiveness, especially against emerging Asian economies.
In a survey of 10,000 Harvard alumni, which incorporates the opinions of global executives in leadership and decision making roles, 71 percent of respondents expect U.S. competitiveness to weaken over the next three years, mostly because of the inability of U.S. firms to pay high wages and benefits.
17 state-owned companies in India have been told by their government to start investing in public infrastructure projects, said the Financial Times on Wednesday, after a series of political inaction, coupled with an exit of foreign capital, saw the nation’s economic growth rate decline from 9 percent to 7 percent last year.
Indonesia has finally regained its investment-grade rating from Moody’s Investors Services on Wednesday, more than 14 years after the Asian Financial Crisis compelled credit rating agencies to downgrade the country’s sovereign debt rating to junk status.
The decision by Moody’s comes after a similar rerating by Fitch Ratings last month, with most analysts expecting Standard & Poor’s to follow suit in the next couple of months as well.
Recent favourable macroeconomic data has suggested that the US economy could be back on track. But the recent uplift in the economy only hides more fundamental problems, and the US still remains in the early stages of a deleveraging cycle.
NEW YORK – Macroeconomic indicators for the United States have been better than expected for the last few months. Job creation has picked up. Indicators for manufacturing and services have improved moderately. Even the housing industry has shown some signs of life. And consumption growth has been relatively resilient.
After a tough year, the World Bank has cut their growth forecast for 2012, acknowledging that the global economy is still in a precarious situation and not poised for recovery yet.
The World Bank is predicting a modest 2.5 percent growth this year, down from a June 2011 estimate of 3.6 percent. For the United States, the world’s largest economy, the Bank predicts a 2.2 percent growth, down also from a previous 2.9 percent forecast.
The pragmatic commitment to growth that one sees in Asia and other emerging markets today stands in contrast to the West’s misguided policies, which, driven by ideology and vested interests, almost seem to reflect a commitment not to grow. As a result, global economic rebalancing is likely to accelerate, almost inevitably giving rise to political tensions.
China is preparing itself, and its rail system, for the largest annual human migration, as people return to their families and hometowns in celebration of the Spring Festival. The 7-day “Golden Week” holidays is expected to make almost 5.9 million trips per day across China.
The Spring Festival, or the Chinese Lunar New Year, is the time when millions of Chinese travel via planes, buses and trains back to their hometowns for one of the biggest Chinese holidays of the year.
More Americans today believe that there is a conflict between the rich and poor in the country as compared to two years ago, claimed survey findings published by Pew Research Center last Wednesday; with tensions over wealth inequality seen to be even greater than those over immigration, race or age.
The city of London could soon be flooded with billions of dollars worth of Chinese money, said a report by Reuters on Sunday, after UK finance minister George Osborne announced a landmark deal that sees London teaming up with Hong Kong to develop a offshore trading centre for the Renminbi.
