India vs China: How will these economies turn out?
05 Jun 2010
It was a data heavy week for the global economy. India's GDP growth came in stronger than expected for FY10. Chinese manufacturing was weaker than expected for May and dragged down Chinese markets.
India's GDP grew at a faster than expected 8.6 per cent in the Jan-March quarter. Thiugh China's had grown even faster at 11.9 per cent, this week's data showed Chinese manufacturing on the purchasing managers index (PMI) slowed down in May.
What's more Chinese authorities have been furiously targeting the bubbles in its property market, dragging the equity markets into bear territory.
CNBC-TV18 shares with domain-b its interview with two Morgan Stanley Economists, Qing Wang who tracks China and Chetan Ahya who tracks India, who spoke about how they see these two economies pan out.
Wang: The PMI is indicating sequential growth momentum. Our GDP growth for Q1, we do believe that the Chinese economy is slowing on sequential terms. The May PMI exaggerating the downside risk is little bit because typical similar patterns suggest that there will tend to a small decline of PMI in May. No doubt the Chinese economy momentum is weakening, but overall growth is still strong.
11.9 per cent in Q1, what is your estimate for 2010 on an average?
Wang: For 2010, we expect 11 per cent growth basically reflecting normalisation policy. At the same time, we expect that the global growth momentum will be recovering, but remain tepid.