New Delhi: The global slowdown and domestic pressures are expected to hurt two fast growing Asian economies--India and China, with their growth projected to fall sharply next year, followed by only a modest rebound in 2010, says a report.
According to the Economist Intelligence Unit’s report on the current financial turmoil and its impact on global economy, the expansion of Indian and Chinese economies could come to an abrupt halt.
“The breakneck expansion of recent years in China and India could come to an abrupt halt, with their economies facing pressure from both the global slowdown and a build-up of domestic problems,” the report noted.
It also said that under the risk scenario, growth in both the countries “falls sharply in 2009 and rebounds only modestly in 2010, and the rest of emerging Asia is also severely hit”.
The Economist Intelligence Unit is the business information arm of the Economist Group, the publisher of weekly magazine The Economist.
Titled ‘Shooting the rapids: What happens if financial turmoil capsizes the global economy?´, the report said a shallow and short slowdown in the developed world would remove little buoyancy in commodities markets, but a more marked and prolonged decline that included the major emerging markets would bring a much sharper adjustment.