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China, India contribute to Asia's economic growth - S&P

(Xinhua)
Updated: 2008-05-01 15:11

SINGAPORE -- With the enormous momentum from China and India, Asian economies will still grow at a relatively fast pace in the next two years, according to a report issued Wednesday by Standard & Poor's.

The recession in the US economy for the first half of 2008 will not have a strong impact on Asia, Subir Gokarn, S&P Asia-Pacific chief economist, said in the report.

The momentum from China and India, two of the three largest economies in the region, "will help sustain a positive growth environment for Asia-Pacific as a whole," and "insulate themselves against a US recession," according to the report.

However, the growth rate of the region would slow somewhat, Gokarn said while noting some key risks the region will face, such as a prolonged US economic slump and hikes in food and fuel prices.

"There are some visible threats to the region in the form of food and energy prices, which may adversely affect performance over the next couple of years," he said.

Managing the risks "will be the most important challenge" facing policy-makers across the region, he added.



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