It is rightly said that " When China sneezes, world catches cold" , The economy which has been an engine of World GDP growth for over a decade is showing signs of slowdown . Official forecast for GDP growth of current year is pegged at 7% but as per movement of railway cargo, electricity consumption growth can be around 2%.
Economies around the world which flourished on China's demand for commodities are facing recession eg. Brazil is facing recession due to high debt, expanding current account deficit, Depreciating currency.
Among the emerging economies India is in a good position to take advantage as its macro indicators are in much better position compared to other emerging markets
The two factors which are currently affecting world economy are China growth and Federal Reserve rate hike, New insights can be drawn from developments coming in the month of September.
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