Fast emerging market of China saw its official purchasing manager’s index rise in March, beating expectations and pointing to brisk first quarter growth. Strong export growth and continued factory sector expansion points to an acceleration in industrial production. South Korea’s reported March exports rose 35.1% from a year earlier.
Coming to India, combined domestic passenger vehicle sales rose by 19.3% in March at 195805 units. Car sales have picked up pace since mid-2009 as the emerging market economies felt the first wave of optimism from the global recession.
China is back to high growth rate very near to double-digit percentage growth witnessed before the crisis. China is certainly leading the global growth as major western countries still reel under the pressures of economic slowdown.
According to the Grant Thornton IBR 2010 Report,
“A balance of +57% of privately held businesses (PHBs) in 14 of the world’s leading emerging markets indicated that they were optimistic about the prospects for their country’s economy in the year ahead. At the same time, a balance of just +2 per cent of businesses in mature economies indicated that they were optimistic. These figures compare with a global average of +24 per cent.”
According to the report, the prospect of economic recovery in emerging markets led by China and followed by India and other emerging markets, looks bright.
Economic Outlook over next 12 months
Russia comes third on the back of the abundance in its natural resource wealth. The growth rates over the next two years in emerging economies are forecasted to be double than that of mature economies.
The survey points out that China leads the way on the back of its huge consumer market, increasingly open economy and trade growth. The report also links a lead from emerging markets like Mexico and Brazil after China, India and Russia. Mexico’s appearance reflects from its substantial international trade and its relatively high standard of living.
Top 15 Countries with most opportunities of growth
China and India still stand out as the emerging markets with best opportunities, due to their GDP and population size. However, the survey states that poor access to finance and lack of highly-skilled workers can put a check on the growth prospects of emerging market economies.
Do you feel Emerging markets have enough fuel to stoke further sustained recovery?