Allianz Forecasts Emerging Asian Markets to Lead Global Growth in 2010

An anlaysis from Allianz Insurance Management Asia Pacific concludes that regional GDP is expected to grow by 6.7 percent in 2010, with Asia contributing “almost 39 percent to next year’s global economic expansion,” with China and India still leading the way.

Allianz expects the economic upswing in the Asian emerging market economies to continue in the year 2010, supported by an ongoing stimulus from the fiscal and monetary policy side as well as by a clear recovery in world trade. Gross Domestic Product (GDP) growth should reach 8.7 percent in China and 6.5 percent in India.

Emerging Asia as a whole is likely to grow by 6.7 percent. “This means that Asia will contribute almost 39 percent to the expected increase in global economic output of 2.8 percent next year,” noted Michael Heise, Allianz Chief Economist.

“No doubt, emerging Asia has weathered the most severe global economic downturn seen since World War II better than other regions in the world. It was affected, but nonetheless managed to avoid an outright economic contraction,” the report continued. “Stimulated by a huge fiscal package and strong lending growth, the Chinese economy has gained momentum from one quarter to the next in 2009. Over the course of the year, one after the other major Asian emerging market country has managed to revert to growth, too.”

Heise added: “Thanks mainly to the solid performance of China and India, regional GDP will show an increase of 4.8 percent this year. This is quite impressive, given that at the same time global economic output will contract by more than 2 percent. You can call Asia, and China in particular, a relatively stable ship in stormy seas.”

The full report and additional information may be obtain ed on the Allianz web site at: www.allianz.com

Source: Allianz

Topics Trends China Allianz