Economics
The Problem With China and India's GDP, According to a Star Economist
- No major Asian economies can sustain 7% in foreseeable future
- China can avoid a financial crisis but growth will slow
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The two biggest emerging markets are probably growing much slower than official data suggests, part of a trenchant downturn in growth seen around the globe, according to Ruchir Sharma, head of emerging markets equity and global macro at Morgan Stanley Investment Management.
China’s gross domestic product is more likely expanding 4 percent to 5 percent than the official rate of more than 6.5 percent. India’s pace is probably five percent to six percent, instead of the stated number of almost 8 percent. "That’s my best guess," Sharma, author of the best-selling book "The Rise and Fall of Nations," said in an interview in Hong Kong this week.