China, India to lead 2013 global growth: report

NEW YORK Thu Jan 24, 2013 4:32am IST

Labourers are silhouetted against the setting sun as they work at the construction site of a residential building in Hyderabad October 5, 2012. REUTERS/Krishnendu Halder

Labourers are silhouetted against the setting sun as they work at the construction site of a residential building in Hyderabad October 5, 2012.

Credit: Reuters/Krishnendu Halder

Related Topics

NEW YORK (Reuters) - Emerging economies will lead growth in 2013 as the global economic outlook remains challenged by the eurozone's debt crisis and high unemployment in the United States, according to a report released on Wednesday.

Growth rates in and around Europe look weak over the next 12 months with an expected expansion of 0.2 percent in the eurozone and 1.1 percent in the United Kingdom, according to Grant Thornton's quarterly International Business Report.

Economic growth in the United States remains weak and unemployment high, while growth rates in China are expected to pick up to 8.2 percent in 2013 from 7.8 percent, while India is expected to quicken to 6.0 percent and Brazil to grow 4.0 percent.

Business optimism in Brazil, Russia, India and China, also known as BRIC countries, increased in the fourth quarter of last year.

The survey of 3,200 business leaders in 44 countries found that optimism in the BRIC economies, all deemed to be at a similar stage of newly advanced economic development, has increased to 39 percent in the last quarter of 2012 compared with 34 percent one year earlier.

Emerging markets in Asia Pacific (excluding Japan) also saw an uptick in business optimism, while optimism in North America decreased during the same period. It swung from 6 percent in the fourth quarter of 2011 to 52 percent in the second quarter of last year, before falling back to just 1 percent by year-end.

What is holding these countries back is the cost of borrowing. More than a third (34 percent) of businesses in the BRIC economies cite the cost of finance as constraints on their growth prospects, compared with 17 percent in Group of 7 countries.

More than a fifth of BRIC businesses cite the poor quality of local transport, information and communications technology and infrastructure as likely growth constraints in 2013.

(Reporting By Manuela Badawy. Editing by Andre Grenon)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Earnings Season

Reuters Showcase

Obama In India

Obama In India

In parting shot, Obama prods India on religious freedom.  Full Article 

Market Rally

Market Rally

Sensex, Nifty hit record high for fifth straight session.  Full Article 

Restructuring

Restructuring

Max India to be split into three separate companies.  Full Article 

India’s Male Tenor

India’s Male Tenor

India’s lone male tenor wants to ‘Indianise’ opera  Full Article 

Indian Equities

Indian Equities

Hornbill raising $250 mln to invest in equities - partner.  Full Article 

Ratings Downgrade

Ratings Downgrade

S&P downgrades Russia's sovereign credit rating to "junk".  Full Article 

Facebook Outage

Facebook Outage

Facebook takes blame for service outages, which hit wider Web.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage