The focus of global spending has gradually shifted from G7 wealthy countries to emerging markets, a sign of the emergence of an Asia-Pacific “era,” the Council for Economic Planning and Development (CEPD) said in a report last week.
The emerging markets, including those in the Asia-Pacific region, Eastern Europe, the Middle East, Africa and Latin America, have become the main drive for global economic growth as they took the lead in recovering from the global financial crisis, the government’s top economic planner said last Tuesday.
In particular, the impact of the financial crisis on China and India was relatively limited, the CEPD said, adding that with multiple stimulus measures to help expand internal demand, the two countries were turning into the world’s market rather than the world’s factory.
The latest data by Global Insight Inc, an independent economic and financial services firm based in Lexington, Massachusetts, showed that emerging countries’ economies were expected to grow approximately 5.5 percent next year, accounting for 53.1 percent of global economic growth, compared with 44.9 percent for industrialized countries, the CEPD said.
Because of the rising consuming power of the middle-class population in China and India, the countries’ economic growth is expected to make up nearly one third of the world’s momentum next year, becoming the key to the global steady economic growth, the CEPD said.
Among the emerging markets, the Asia-Pacific market has shown the strongest sign of recovery with projected economic growth of 7.5 percent, accounting for more than 40 percent of global economic growth, the CEPD said.
As for Taiwan, the CEPD said last Monday that the government’s economic growth target was 4.8 percent for next year.
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