China and India may soften US slowdown
By Benjamin Morgan, Business Report, January 28, 2008
With fears mounting of a global economic slowdown, some analysts predict developing giants China and India, with their booming growth, will help lessen the impact.
Stock market turmoil last week triggered by fears of a US recession in the wake of a massive mortgage crisis has ignited debate over whether Asia's two rising economic stars are strong enough to power the world economy.
This directly challenges the 20th century economic adage that when the US economy sneezes the rest of the world catches a cold.
"What is occurring is the rise of other economies to balance out those of the US - and that has to be a good thing," said Chris Devonshire, a consultant specialising on China and India.
"The US has problems but these will be offset against markets elsewhere. The new world order is working," said Devonshire.
China saw scorching expansion of 11.4 percent last year, closely followed by India's 9.4 percent, and the prospects for both countries were strong.
With fears mounting of a global economic slowdown, some analysts predict developing giants China and India, with their booming growth, will help lessen the impact.
Stock market turmoil last week triggered by fears of a US recession in the wake of a massive mortgage crisis has ignited debate over whether Asia's two rising economic stars are strong enough to power the world economy.
This directly challenges the 20th century economic adage that when the US economy sneezes the rest of the world catches a cold.
"What is occurring is the rise of other economies to balance out those of the US - and that has to be a good thing," said Chris Devonshire, a consultant specialising on China and India.
"The US has problems but these will be offset against markets elsewhere. The new world order is working," said Devonshire.
China saw scorching expansion of 11.4 percent last year, closely followed by India's 9.4 percent, and the prospects for both countries were strong.