‘Resilient’ East expects 6% growth

Emerging markets,
especially in the East, are
showing huge resilience
following the massive
global economic downturn
of 2009 and are expected
to see growth in the region
of 6% and more in the next
few years.
According to Yves
Zlotowski, chief economist
for the Coface Group,
this is phenomenally
high compared to world
economic growth, which
is expected to be in the
region of 3.5%.
“Emerging Asia has
had a very low level of
debt and therefore has no
leverage problems and is
showing major growth.
One must not forget that
while they were not as
badly affected by the
2009 recession as the US
or UK for example, they
have had their own share
of problems. They have
been in recession before.
Their ability for resistance
is very good and positive,”
says Zlotowski.
He said Asia for the
most part had been given
very positive ratings by
Coface, as the countries
are extremely stable.
Zlotowski believes
that the 2009 financial
crisis brought some major
changes to the world with
China and India playing a
much more important role
than ever before. “We will
also see the US economy
return to growth, but at
a different rate. People
will be saving more and
spending less and that
will impact on the role the
emerging markets play.”