India, China to escape economic downturn: German economist?

Question

(The Hindu, Aug 10, 2006) India and China will escape the downturn that other countries in the world are expected to face, with Asian countries expected to grow by at least seven per cent and nine per cent respectively during the current fiscal, Deutsche Bank Chief Economist Norbert Walter said on Wednesday.

Delivering a lecture on "World Economy--Longest Ever Recovery About to End?", Walter said he sympathises with the concerns expressed by the Reserve Bank over inflationary expectations in its quarterly review of the monetary policy.

RBI had hiked interest rates, at which banks park their short term funds with the central bank and vice versa by 0.25 per cent each, leading to increase in interest rates by some banks.

To make up for the slowing down of investment that certain interest rate sensitive areas may witness, India should facilitate pumping of funds in other areas, he suggested.
source:http://www.zoomchina.com.cn/index.php?/content/view/11020/1/

Answer 1

wow, respected economist, forecast economic can compare to forcast weather.

China, India depend on US money. if US slow down, they will be slow down too. IF US consumers stop spending due to high gas price, millions chinese,indian workers will be unployment line office. what kind of forcast is that.

did you notice that at may 12,2006 SP500 drop 5-6 %, japan,india,china index drop 20%? There is no immunity in India or China.

let me put in simple language: if US economy is sick, global economy in seroius condition

when ben bernanky speaks, he moves the whole global market. he is considered one of the most powerful man on earth because of our DOLLARS.