Asian emerging nations to post stronger growth than developed economies: WB

MANILA, May 19 (Xinhua): Emerging economies in the Asia Pacific region would continue to post growth rates that would exceed those of the developed countries, making it possible for the world's total production being equally divided among the rich and the emerging markets by 2025. It was among the highlights of the latest report of the World Bank, entitled "Global Development Horizons 2011--Multi- polarity: The New Global Economy". The report forecasted that emerging economies could grow by an average of 4.7 percent this year until 2025, while the industrialized nations are only projected to expand by an average of 2.3 percent. Because of this, the developing economies will eventually catch up with the rich nations in terms of contributions to global output, the report added. "One of the most visible outcomes of this transformation is the rise of a number of dynamic emerging market countries to the helm of the global economy," the World Bank said. The World Bank noted that emerging markets now account for two- thirds of the world's foreign exchange reserves-a reversal of the picture of the previous decade when industrialized countries owned the bulk of the reserves. China has the biggest share of the global reserves among emerging markets at 3 trillion U.S. dollars. "In short, a new world order with a more diffused distribution of economic power is emerging-thus the shift toward multi- polarity," the World Bank report. The rising role of emerging markets would eventually diminish the primacy of the U.S. dollar in international trade and finance. Eventually, countries would keep almost equal shares of the U.S. dollar, the euro and the renminbi in their foreign exchange reserves, the bank added. "Over the next decade or so, China's size and the rapid globalization of its corporations and banks will likely mean a more important role for the renminbi.