05 May 2008

India, China to save the world

DUBAI - Top economic guru and chairman of Oxus Investments, Surjit Bhalla, delivering the opening keynote speech at the Arabian Hotel Investment Conference (AHIC), predicted continued growth of the global economy.

Heading the inaugural Indian Summit session, Bhalla said there was every indication that despite the housing and financial crises in the United States, there was a reasonable chance of avoiding recession ââ¬' and this would be due to the impact of high growth rates in India and China.

He told the AHIC audience of more than 1,000 registered delegates that 10 years ago, the US accounted for 25 per cent of world GDP growth, while India and China collectively accounted for nine per cent.

"Today, the US has dropped to 20 per cent but India and China economies have more than doubled and now together also contribute some 20 per cent," he said.

"This gives us a hint as to why current circumstances will not result in global recession or depression."

Bhalla tressed that the slowdown would not last long and suggested that inflation was another temporary phenomenon.

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