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Emerging markets power ahead
New research released by HSBC suggests that emerging markets will lead the way on economic recovery, with growth rates of up to 6 per cent next year.
The first-ever HSBC Emerging Markets Index (EMI) suggests that the 6 per cent growth rate will be achieved in comparison with developed world expansion of just 1.8 per cent.
Commenting on the new index, HSBC group chief executive Michael Geoghegan said the new measure had shown that emerging markets were continuing to power the growth of the economy.
He pointed to the fact that the EMI had surged from 50.7 in the second quarter to 55.3 in the third quarter and had rebounded from the all-time low of 43.8 recorded in the final quarter of last year.
HSBC chief economist Stephen King said although the US remained the most important partner for many emerging nations, its relative importance was declining.
“We now expect emerging nations to see economic growth of 6 per cent next year while the developed world will expand by only 1.8 per cent,” he said.
HSBC Bank of Australia's head of global markets, Tony Cripps, placed an Australian context on the index, saying the importance of emerging markets on the local economy had become apparent in recent years, so the strength of HSBC’s outlook for emerging markets growth “bodes well for Australia’s economic prospects in the year ahead”.
AUTHOR
Mike Taylor
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