“If you look at some of the biggest countries, it looks like India is going to have a good third quarter,” Kim said at Wall Street Journal CEO Forum meeting. He was responding to questions on slowed growth in developing countries. “China came in at an annualised rate of 9.3 per cent in the third quarter. And you know, there are all kinds of downside risks the biggest one being what’s going to happen here in this country when February rolls around.
“But we think that, over the next year, growth in the emerging markets is going to be over 5 per cent, and we think that’s going to continue,” the World Bank President said.
“It’s quite possible that the esimates made by the Reserve Bank or the Prime Minister’s Economic Advisory Council or the government about growth being between 5 and 5.5 per cent will be realised,” Chidambaram said.However, the World Bank President acknowledged that the developing countries are unlikely to go back to the 10 plus growth rate which was experienced before the economic recession in the US. “You’re not going to see, I don’t think, the 10-plus percent growth rate that you saw prior to 2008, but you know, a lot of the fundamentals in these countries are in much, much better shape than we even knew.
In 2008, we thought that Africa was going to go off the deep end with the financial crisis, but then kept a 5-plus per cent growth rate all the way through,” he said. (PTI)