‘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.”