China and India Will Power Asian Economy in 2007
Asian economies grew this year despite nuclear tests, mass rallies, record oil prices and interest rate hikes.
Overall growth this year in Asia will be about 7.7% – more if Japan is added in.
It is likely to be more of the same next year:
1. Investors see the fundamentals in Asia as having improved overall
2. Countries have more foreign reserves to meet external payments
3. Socio-political climate in Asia is much more stable now.
4. China will continue to grow at near 10%
5. India will continue to grow at 9% or better
6. Vietnam expects direct investments to hit a record high
7. Hong Kong's GDP will grow by 4-5%
8. Singapore expects a 5+% growth in GDP
9. Taiwan will grow at 4+%
10. South Korea will grow at 4% or better
Japan's growth is far behind at maybe 2% but that 2% helps fuel the rest of the region.
Asia is growing and Asia is not as dependent now on the U.S. economy as before. Asia can sell and buy among the countries of Asia.
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