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The following article was published in our article directory on December 22, 2010.
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Article Category: Business
Author Name: xia zihui
Including the "BRIC" emerging leaders, including the 10 economies in the next 10 years, the contribution to global economic growth rate will exceed 50%. But now, these countries face how to deal with rapid economic growth, inflation pressures and capital inflows lead to solving the dual problem of the currency appreciation.
The next 10 years global economic growth
Contribution rate of over 50%
Why should EAGLEs this concept, it and the "BRIC", "civet six countries" and "frontier markets" of the differences? Existing grouping is static, not flexible enough; only concern such as GDP or the size of the population, rather than the entire world economic growth; forecasts are based on too long and the perspective of limited significance to investors; selection methods is a member of a particular choice. In addition, sometimes more concerned about the abbreviated name rather than those economies themselves. EAGLEs covered are those expected in the next 10 years, the contribution to global GDP growth will exceed the average level of G7 countries, emerging economies.
BBVA Research forecast global GDP between 2010 and 2020, adjusted for purchasing power parity increment of about 41 trillion U.S. dollars; EAGLEs in which the contribution of more than 50%. Given the economic uncertainties facing the forecast, annual update of the list, some of the economic experience among the EAGLEs the list, while other economies were likely to leave the "club."
Indonesia and South Korea are expected in the next 10 years, the contribution to world economic growth will be more than Russia, the incremental demand for the sum of the two countries would be 1.5 times in Brazil. Indonesia's economic growth is expected in addition to its economic size and the future addition, there are many aspects worth mentioning, including the economic good governance, sound economic fundamentals and stable good investment environment.
Face the dual challenges of inflation and appreciation
Emerging market countries and regions, the institutional framework is not as developed from perfect, but in the past 10 years, the relevant indicators in this area of emerging economies have made remarkable progress. These economies should continue efforts to catch up with developed countries.
Emerging economies are experiencing a challenging situation, rapid economic growth, rising inflationary pressures and currency appreciation pressure of capital inflows are growing wider. These countries and regions, the monetary authorities will have to deal with these issues sooner or later in order to avoid external imbalances and asset bubbles may damage its growth trend. In the long run, these economies need better living conditions to improve income distribution, reduce poverty and promote equality.
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