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India, China leading world out of
downturn
Friday, November 13, 2009 06:46:37 PM,
SiliconIndia News Bureau |
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Singapore:
As trade and finance ministers at the APEC forum pledged to make
Asia-Pacific a cheaper, faster and easier region to do business in
by 2015, business leaders said that India, China and other Asian
countries are leading the world out of the global economic crisis.
The biggest economic crisis since the 1930s has been the focus of
this year's Asia-Pacific Economic Cooperation forum, an annual
gathering of 21 member economies from Asia and the Pacific Rim. "As
spending drops and savings increase among consumers in the U.S., the
world's biggest economy, somebody else has to spend more somewhere
else in the world. This has to be in Asia," said Singaporean Prime
Minister Lee Hsien Loong. "The next few years' growth will be slow
worldwide, but in the long term Asia will do well.”
He
said that the demographics are favorable for growth in China and
India, two rare bright spots in the world economy with growth rates
of over six percent. The International Monetary Fund said last month
that Asia would grow 2.75 percent in 2009 and 5.75 percent in 2010,
far outpacing the West. Lee said that the growing middle class in
China and India will have greater spending power amid greater
urbanization and demand for infrastructure. Other business leaders
at the meeting, held on the sidelines of the annual APEC forum,
agreed.
"Historically, the developed economies led recoveries. This time,
it's going to be the developing economies," said Dennis Nally,
Global Chairman of PricewaterhouseCoopers International. Still,
while the worst is over, sustaining the recovery - and ensuring that
it is balanced - remains a key challenge, APEC and business leaders
said.
The week-long forum culminates in a weekend leaders' summit that
will include President Barack Obama, Chinese President, Hu Jintao
and Japanese Prime Minister, Yukio Hatoyama, as well as leaders from
Southeast Asia and Latin America.
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