The Associated Press is reiterating China and India’s role in the global economic downturn, citing a top Pacific Rim trade economist and the International Monetary Fund in the positive impact of China and India’s growth. The IMF claims that developing nations, including China and India, will account for “the world’s entire projected 2.2 percent overall growth next year.”
The IMF estimates that the economy from rich nations will grow by a mere 0.1 percent while the developing world is expected to grow almost five percent. China and India have grown at near double digit rates respectively, and the two countries hold 40 percent of the world’s population. Although the growth rates in both countries are expected to slow, “the production drop [will] be far softer than [in] rich countries” because China and India have the world’s largest cash reserves.
China and India are members of APEC, and at last week’s G-20 summit in Washington DC both expressed a demand for “greater say in world economic and political forums.” The summit saw G-20 presidents agree to “take whatever action necessary to stabilize the financial system.”