Jan. 30 – Emerging economies such as China, India and Brazil are among the popular crowd at the World Economic Forum in Davos, Switzerland. While the 2010 forum was filled with ire directed towards the bankers of the world, this year’s forum is focused on the role emerging markets will play in the future.
The biggest issue for emerging market economies in the months to come is that they could be growing too quickly, generating inflation and regional macroeconomic instability. Continue reading
Jan. 30 – Russian President Dmitry Medvedev set a goal of 10 percent growth every year for the next five years as the world’s largest supplier of energy attempts to catch up with other emerging markets such as China and India.
“I would like us to grow at least at the rate shown by some of our BRIC partners,” Medvedev said in Davos, Switzerland, before delivering the keynote address to the World Economic Forum. “Our growth of 4 percent isn’t bad compared with the U.S. and Europe. But that’s not enough for what’s called an emerging market. That’s why we need to grow 8 to 10 percent a year.” Continue reading
Jan. 28 – Private capital flows to emerging economies totaled US$600 billion in 2009. That figure should swell to US$960 billion this year and to US$1 trillion in 2012, according to the Institute of International Finance.
“Rising flows are supported by strong emerging market fundamentals, long-term investor portfolio rebalancing and abundant global liquidity,” said the association of financial institutions. Continue reading
Jan. 27 – A recent survey by a Hong Kong-based consultancy rated both India and China as the countries with the most inconvenient regulatory environment.
The “Regulatory Overkill” survey released by the Political and Economic Risk Consultancy (PERC) uses a grading system with zero as the best possible score and 10 as the worst. India and China received the mark of 9.16 and 9.04 respectively, becoming the two most over-regulated countries among the 11 Asian economies surveyed. Continue reading
Jan. 27 – Our good friends over at Gateway House, an India policy think tank based in Mumbai, have recently produced an interesting piece on President Hu Jintao’s trip to the United States and how prior meetings President Obama held with Indian Prime Minister Manmohan Singh may have impacted upon this. Continue reading
Jan. 25 – Société Générale, Frances’ largest bank, has told clients to hedge against the danger of a spike in Chinese growth over coming months that will push commodity prices much higher, followed by a sudden reversal as China slams on the brakes.
In a report titled The Dragon Which Played With Fire, the bank’s global team said China had carried out its own version of “quantitative easing,” cranking up credit by US$20 trillion, equivalent to 50 percent of its GDP since 2008. SocGen says China has waited too long to drain the excess stimulus, and that significant credit tightening is required to correct the problem, an issue that will also seriously dampen China’s growth. Continue reading
Jan. 25 – During the joint press conference Chinese President Hu Jintao and U.S. President Barack Obama co-hosted on January 19, the two leaders went through a 45-minute-long Q&A session and answered questions from both American and Chinese journalists.
This was quite a different scenario from the joint press conference held by the pair last year in Beijing, during which no American journalists were given an opportunity to ask questions.
American reporters who raised questions were mostly interested in China’s human rights record and the economic ties between the two countries. U.S. journalists referred to China’s human rights issues as “using censorship and force to repress its people.” Continue reading