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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5468)	8/5/1999 12:49:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

India will be second fastest growing economy by 2000 : Merrill Lynch Source : ET Aug 5, 1999, 7:48:32 AM After China, India would be the fastest growing country in the world during 2000, the last year of the millennium, says Merrill Lynch, the US-based financial service organisation. Its monthly publication, Global Economic Trends, has forecast that the real growth rate of gross domestic product during the year 2000 would be seven per cent in China and six per cent in India. In all the other countries surveyed the real rate of GDP growth has been forecast to be lower than six per cent. The publication has claimed that the overall world economic outlook would improve next year with the growth rate picking up from 1.7 per cent in 1998 to 2.4 per cent in the current calendar year and 2.7 per cent in 2000. The region that would grow the fastest during 2000 is the Asia-Pacific region (4.8 per cent) followed by Latin America (3.9 per cent). By way of contrast, the growth of the Group of Seven (G-7) most developed nations would be 2.3 per cent, the publication has suggested. After China and India, the countries which are expected to grow the fastest during 2000 are Taiwan (5.9 per cent), Egypt (five per cent), Malaysia (4.6 per cent), Singapore (4.5 per cent), Poland (4.3 per cent) and Hungary (4.3 per cent). In Latin America, the fastest growing country would be Brazil (4.2 per cent) followed by Argentina (4.1 per cent), Chile and Mexico (both four per cent), the Merrill Lynch report has added. Among developed nations, the report has forecast, Spain would grow at the fastest pace, that is 3.9 per cent. The publication has interestingly forecast a high rate of inflation for India. Consumer prices in India are expected to rise by nine per cent in 2000, the highest inflation rate among Asian countries. Only two other countries in the group of nations surveyed would have a higher inflation rate - Russia (30.6 per cent) and Mexico (12 per cent). Elsewhere in the same Merrill Lynch publication, it has been pointed out that on a purchasing power parity basis, China's is the second largest economy in the world after the United States. Using the same criteria, India's economy is the eighth largest in the world after the US, China, Japan, Germany, France, Britain and Italy. The publication has stated that "emerging Asia has consumed less than other emerging markets" and that particular Asian nations invested much more than other countries in different parts of the world. "This is not surprising, as investment was the key to the Asian miracle," the report has observed. In a chart comparing different countries gross fixed investment as a proportion of GDP using data compiled by the International Monetary Fund, the report ranks Malaysia the highest (42.8 per cent) followed by other Asian nations such as Singapore, Thailand, South Korea, Hong Kong and China. In this chart, India has been ranked in the 14th position. Gross fixed investment as a percentage of GDP is just under a quarter for India. While the Merrill Lynch publication describes China and Brazil as the world's two largest emerging markets, India evidently still has to do some catching-up. walletwatch.com