Bangkok--13 Sep--Standard & Poor's
With developing countries accounting for two-thirds of the world's economic growth this year, overall economic growth will reach 4.9% in 2006 before slowing to 4.5% in 2007, says Standard & Poor's Ratings Services in a new report to be published in the Sept. 13, 2006, issue of CreditWeek, the financial market intelligence leader's weekly outlook on credit risk. Asia is leading the way, Standard & Poor's reports, but many non-Asian economies are also booming.
In a report titled, "Developing Countries Are Actually Developing," Standard & Poor's Chief Economist, David Wyss, notes that although China and India are the biggest stories, they are not the only successes in the developing world. Brazil, Mexico, Chile, and Peru have also shown solid growth after declining during the U.S. recession and after the Argentine crisis. Russia has also gained from higher commodity prices.
"Of course, higher oil prices affect emerging economies even more than developed ones but, overall, the global economic picture is healthy," states Mr. Wyss. "With developing countries catching up, at least slowly, with the industrial world, and emerging economies able to repay their debts, our current outlook is positive."
Sub-Saharan Africa may be the only exception to broad growth of developing market economies. Although real GDP has risen an average of 4.6% during the last four years, the commodity-pricing countries, especially Nigeria and South Africa, account for most of that. Real economic development is still a long way off, concludes Standard & Poor's. However, even modest GDP growth offers more hope than has been seen in a long time.
The article is part of a special report, "Emerging Markets: Changing The Rules Of The Game," published dually on RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, and, in hardcover, in the Sept. 13, 2006, issue of Standard & Poor's CreditWeek. The report, developed in advance of this year's annual meeting of the World Bank and International Monetary Fund in Singapore, examines the broad emerging market landscape, including the roles that government regulations on investment, public/private partnerships, structured finance, and project financing are playing in expanding economic development.
For more information visit Standard & Poor's Web site at www.standardandpoors.com . In addition, video commentaries by many of the report's authors will be available at this site after Sept. 12, 2006.
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com . If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected] . Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com ; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contacts:
Michael Privitera, New York (1) 212 438-6679
[email protected]
Martin Winn, London (44) 20-7176-3740
[email protected]
Analyst Contact:
David Wyss, New York (1) 212-438-4952