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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Photo

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

China iPhone Sale

China iPhone Sale

China regulator approves Apple's iPhone 6 for sale in China  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Jaitley's Health

Jaitley's Health

Finance Minister Jaitley in isolation ward, may skip U.S. trip.  Full Article 

China Factory

China Factory

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Vadodara Violence

Vadodara Violence

Police arrest 140 for religious clashes in Vadodara as Modi tours U.S.  Full Article 

Japan Economy

Japan Economy

Economy takes another hit as spending, factory output fall  Full Article 

AIG Bailout

AIG Bailout

Six years after AIG bailout, trial asks: was it legal?  Full Article 

Reuters India Mobile

Reuters India Mobile

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