Market outlook: 'Growth in emerging markets may be better than developed world'
According to the 2013 International outlook by Columbia Management and Threadneedle Asset Management, its global partner, pace of growth in emerging markets have witnessed a slowdown over the last year, but still about 70 per cent of the world's incremental growth comes from these markets.
Economic growth in Global Emerging Market (GEM) seems to have stabilised albeit at a lower rate than before and the pace of growth is not likely to return to the high growth rates of last decade, particularly in China.
"...but we would argue that this will perhaps be a higher quality more sustainable type of growth moving forward, led by the rise of a powerful middle class and perhaps less fixed asset investment," the report said.
According to the report, the global emerging markets have a favorable demographics. Demographics in emerging markets are much healthier than the developed world, which will continue to act as tailwind over time as having a young, growing workforce certainly increases the potential GDP of a country.
The report lauded the strong demographic profile of India and included India in the demographic winners list along with the Phillippines, Turkey and Brazil.
According to JP Morgan estimates 250 million people are likely to enter the working age population between 2005 and 2025. "This is a staggering number and could turn
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