India’s economic growth rate would be the second fastest in 2008 after China, as independent gold credit rating agency Standard & Poor’s predicted it in its latest survey, published in its official website on April 07, 2008.
As of now, Japan is still at the number one position in terms of largest economic growth in the Asia-Pacific region, while China is blooming very fast to surpass Japan and to be the largest economy country in the region and will become the second-largest economy in the globe in the coming five years if it maintain the same growth rate, assumes S&P. The S&P has conducted the survey for 22 rated sovereigns in the Asia-Pacific region.
The report titled “The Best and The Rest: The 2008 Asia-Pacific Sovereign League”, highlights the fact that India and China are still among the global top 10 fastest growing economies and India will continue to sustain its second position in Asia-Pacific region.
“The strong domestic demand is likely to support their economic performances even if demand from the US and Europe weakens,” it added.
Inflation rate in the entire region is likely to be high by recent standards. India will witness the inflation rate of 4.5% as per S&P predicts while China will also not more far behind to India and will have the inflation rate of 4.4% in this fiscal. Sri Lanka will top in the region with scorching 15.5% in this year.
The raising demand of crude oil, spiraling prices in the food products and China’s increasing crave of commodities would be likely the major cause of inflation in the region.
The average growth rate in the region will be slipped down in the coming years due to US economy recession and dollar depreciation, which has badly affected the Asia-Pacific region.
“We expect regional growth dynamics to be less robust in 2008, with an unweighted average growth rate among rated sovereigns of about 5 per cent compared with 5.8 per cent in 2007 and a record 6.6 per cent in 2004,” said Yee Farn Phua, the credit analyst of Standard & Poor's.
The export business have been suffered most in the entire region while US slowdown would also affect Foreign Direct Investment in this region, which is also a major reason of higher growth rate.
Despite being the second fastest growing country in Asia-Pacific region, India is at the 18th position in terms of per-capita income while China is on the better position with having 15th position in the rank. But none of them could still be able to get position among the Global top-10 from the Asia-Pacific region in terms of per-capita Gross Development Product.
While on the other hand, three Asian countries rank among the poorest 10; these are Cambodia, Vietnam, and Pakistan along with the rest from the African continent.
|
|
Comments:
