Global economic recovery hinges on emerging markets, says study
Economic growth of emerging markets, such as China, India and Gulf states are vital to...
July 6, 2009 2:34 by Dana El Baltaji
Economic growth of emerging markets, such as China, India and Gulf states are vital to the recovery of developed nations, claims Sarasin Group’s recent Strategy Outlook. “But while these economies show some increase in domestic activity,” the report says, “Sarasin forecasts that the Emerging Markets will not resume their exceptional pre-crisis growth dynamics.”
The report also claims that large stimulus packages will result in economic ‘hangovers’: “Investors are nervous about the fragility of the economic recovery. They are suffering vertigo from the recent surge in stock market valuations and are rightly concerned about the cost of the cure for the global financial crisis. But there is positive news, with recoveries in the US and the UK in sight,” said Guy Monson, chairman of the Investment Policy Committee at Sarasin Group.