subject: zen International International Business(brics Decouple From Us)... [print this page] With China set to grow at 11% this year and India to break into double digits too, it appears that the global recovery is operating at two speeds. That is the view of analysts at Zen International, the Asia-based investment manager.
As the United States and Europe continue to struggle with subdued growth and gargantuan levels of personal and fiscal debt, it is the powerhouses of China, India, Brazil and Russia that are leading the way.
Thanks to chinas 4 trillion yuan stimulus package, the country has effectively developed its own domestic market for its mass produce goods and is attempting to reduce the countrys dependence upon exports for its GDP.
Zen International cites the fact that The Peoples Bank of China (PBoC) has recently taken steps to reduce the overheating real estate bubble in key areas of the country by increasing the reserves that its state-owned banks must have in order to lend on specific assets.
Whilst developed nations engage in hand-wringing over when to withdraw the unprecedented levels of stimulus from their economies, the BRICs nations are awash with foreign currency reserves that are being put to use in the development of markets and infrastructure.
Zen International also pointed to the performance of several emerging nations currencies relevant to sterling, the euro and the US dollar as evidence of the rising prominence of the developing economies.
