New Delhi: Multilateral lending agency Asian Development Bank (ADB) today said that the impact of global financial meltdown will be much more on China than India as the Chinese economy is heavily dependent on exports.
“The extent of slowdown in China is much bigger than India because Chinese economy is more dependent on exports than Indian economy,” ADB president Haruhiko Kuroda said in an interview to NDTV Profit, adding that both China and India were not in recession.
Developing countries will have to restructure their economy and generate domestic demand besides sustaining high growth to avoid poverty, he said.
Even if the global economy recovers from the worst recession, global economic structure will be changed considerably and particularly Asian countries cannot rely on exports, he said.
Emerging economies will slowdown with negative impact on poor and Countries will have to sustain high growth to avoid poverty, Kuroda said.
The global downturn may be deeper and the recovery take longer than earlier expected, he said adding, developing Asia would not have miracle growth and further slowdown this year will be inevitable. However, Indian economy was expected to grow at around 7%.