China will replace US to become new engine of growth for global economy
Thursday, 9 April 2009
From Fazle Rashid
NEW YORK, April 8: China with a foreign exchange reserve of over $2.0 trillion and a huge balance of trade edge over all other major economies, will replace the US and become the new engine of growth for the global economy.
China stands out as one the few major economies in the world to escape recession this year. Despite lowering of its double digit growth rate in the past several years, China will still have a growth rate of 6.5 per cent in 2009 which is a dream for many countries. China's growth rate surged past 11 per cent before the recession.
Recent data have solidified hopes that the Chinese economy may recover soon, a development that will especially crucial for the emerging economies, the New York Times (NYT) in a report said. A recovery in China is likely to begin this year and take full hold in 2010 potentially contributing to region's stabilisation and perhaps recovery, NYT quoted the World Bank as saying.
The total credit losses globally will exceed $4000 billion. Three quarters of these losses will fall on banks while the balance will hit other financial institutions, analysts predict. New cash infusions and mopping up of the toxic assets were cited as strong remedial measures.
British pound is losing its value against euros triggering fear that Britain is doing it intentionally to help boost its exports. The European Central Bank (ECB) without naming England reminded states outside the single currency that they must treat their exchange rates as a matter of common interest as stated in European Union (EU) treaties.
Organisation for Economic Cooperation and Development (OECD) said four other regions that encouraged bank secrecy have agreed to meet internationally agreed standards on transparency. The major tax haven, Switzerland has refused to comply.
On the political front, the most significant news was of President Obama making an unannounced air-dash to Baghdad to be with US soldiers. He reiterated his pledge to end the war and urged Iraqis to take responsibility for their country and for their sovereignty, NYT said.
In another development, US Joint Chiefs of Staff Admiral Mike Mullen and US special envoy to Afghanistan and Pakistan Richard Holbrooke met with Pakistan foreign minister Shah Mahmood Quershi Quershi told US officials that the "trust" between two countries was in question. "There is a gap between us", the Pakistan foreign minister said. Chief of Pakistan's Inter-Service Intelligence (ISI) Lt. Gen Ahmed Shuja Pasha turned down a request for an exclusive meeting with the US official. Pasha was present in the meeting Admiral Mullen and Richard Holbrooke had with Pakistan army chef Gen. Parvez Kayani.
The United States' yesterday put under lock and key a China-based network that was allegedly involved in the supply of materials for Iran's nuclear and missile programmes with the help of some of Wall Streets biggest banks.
Obama's first outing outside Washington has been greeted with accolades. During his trip he met with 16 world leaders.
NEW YORK, April 8: China with a foreign exchange reserve of over $2.0 trillion and a huge balance of trade edge over all other major economies, will replace the US and become the new engine of growth for the global economy.
China stands out as one the few major economies in the world to escape recession this year. Despite lowering of its double digit growth rate in the past several years, China will still have a growth rate of 6.5 per cent in 2009 which is a dream for many countries. China's growth rate surged past 11 per cent before the recession.
Recent data have solidified hopes that the Chinese economy may recover soon, a development that will especially crucial for the emerging economies, the New York Times (NYT) in a report said. A recovery in China is likely to begin this year and take full hold in 2010 potentially contributing to region's stabilisation and perhaps recovery, NYT quoted the World Bank as saying.
The total credit losses globally will exceed $4000 billion. Three quarters of these losses will fall on banks while the balance will hit other financial institutions, analysts predict. New cash infusions and mopping up of the toxic assets were cited as strong remedial measures.
British pound is losing its value against euros triggering fear that Britain is doing it intentionally to help boost its exports. The European Central Bank (ECB) without naming England reminded states outside the single currency that they must treat their exchange rates as a matter of common interest as stated in European Union (EU) treaties.
Organisation for Economic Cooperation and Development (OECD) said four other regions that encouraged bank secrecy have agreed to meet internationally agreed standards on transparency. The major tax haven, Switzerland has refused to comply.
On the political front, the most significant news was of President Obama making an unannounced air-dash to Baghdad to be with US soldiers. He reiterated his pledge to end the war and urged Iraqis to take responsibility for their country and for their sovereignty, NYT said.
In another development, US Joint Chiefs of Staff Admiral Mike Mullen and US special envoy to Afghanistan and Pakistan Richard Holbrooke met with Pakistan foreign minister Shah Mahmood Quershi Quershi told US officials that the "trust" between two countries was in question. "There is a gap between us", the Pakistan foreign minister said. Chief of Pakistan's Inter-Service Intelligence (ISI) Lt. Gen Ahmed Shuja Pasha turned down a request for an exclusive meeting with the US official. Pasha was present in the meeting Admiral Mullen and Richard Holbrooke had with Pakistan army chef Gen. Parvez Kayani.
The United States' yesterday put under lock and key a China-based network that was allegedly involved in the supply of materials for Iran's nuclear and missile programmes with the help of some of Wall Streets biggest banks.
Obama's first outing outside Washington has been greeted with accolades. During his trip he met with 16 world leaders.