•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

From Komfie Manalo, Opalesque Asia:

Emerging economies will account for over 72% of the global gross domestic product (GDP) over the next three years in purchasing power parity (PPP) terms from the current 37% of total GDP. This provides emerging markets the growth/pull factor within the global economy, thus said Laurence Taylor, Portfolio Specialist for the Global Large-Cap Equity Fund at T. Rowe Price, in an exclusive interview with Opalesque.

Taylor cited IMF forecasts which placed emerging market economies to expand between 6% and 7% p.a. from 2011 to 2014 compared with the anemic growth projection of 2%-3% p.a. in developed countries. Growth in emerging economies will be driven by rising domestic consumption and abundance of high returns opportunities.

Several financial experts also share Taylor's predictions. In reporting from Bloomberg, studied Western European government bonds indicates the ongoing debt crisis in the Euro Zone could boost emerging markets. Harpreet Parhar, a strategist at Cregid Agricole SA in London was quoted in the article as saying, "Concerns about the periphery are dragging down western Europe. Emerging markets have solid growth stories and are not directly weighed down by peripheral issues."

Analysts at Canada's AGF Investment......................

To view our full article Click here