China and Russia Have Best Long-Term Economic Prospects

06 January 2009

NEW DELHI: The emerging economies of China and Russia are likely to emerge from the global economic downturn in the strongest condition, followed by those of South Korea and India, according to research from the Associated Chambers of Commerce and Industry of India.

The organisation's study, entitled India & G20: Economic fundamentals amid global recession, reports that Germany, in fifth place, will be the best-placed advanced economy when the recession grinds to a close.

By contrast, the US was ranked in eleventh, followed by the UK and Japan respectively, based on criteria including their foreign exchange reserves, probable growth rates, policies to combat the downturn, interest rate levels and consumer spending power.

The US is also predicted to see the largest total contraction in domestic demand, with the UK, Italy, Germany and Japan also struggling on this measure.

The G20 countries assessed by the report are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK, US, and the European Union, which is also a member of the organisation.

Data sourced from The Times of India; additional content by WARC staff