IMF Projects that Emerging Markets Will Continue to Grow Strongly in 2008
By
Paul Goodwin, Analyst and Editor of
Cabot China & Emerging Markets ReportAccording to the International Monetary Fund (IMF), emerging markets economies are expected to continue to expand strongly through 2008, although growth will be slower than the past two years.
In 2007, the IMF reports that China’s economy grew 11.5% and projects it to grow 10% in 2008. India’s economy grew 8.9% in 2007 and is projected to grow 8.4% in 2008. In contrast, the United States’ economy grew 2.9% in 2006, 1.9% in 2007 and is expected to grow only 1.2% in 2008.
The IMF also reports that China is expected to be the single most important contributor to world growth in terms of purchasing power parity at 33.5% followed by India at 11%. The United Statues is projected to come in third at 7%, the Euro Area at 6.5%, Russia at 3.5% and Japan and Brazil at approximately 3%.
With the combined economies of China, India, Russia and Brazil expected to provide over half the world’s growth in 2008, we think the outlook for investing in emerging markets has never been more attractive.
In particular, we think emerging markets commodities offer extraordinary opportunity for growth as demand increases and companies in natural resource-rich emerging market countries expand to meet the demand. We’re calling it the Commodities Super Boom of 2008.
More on Emerging Markets Commodities BoomAbout the IMF The International Monetary Fund was created in 1945 to help promote the health of the world economy. Headquartered in Washington DC, it is governed by and accountable to the governments of the 185 countries that make up its near-global membership.
www.imf.org