PwC predicts emerging economy slowdown

06/01/2009 PwC predicts emerging economy slowdown

There will be a slowdown in growth among emerging economies during the coming 12 months, it has been predicted.

However, they could still overtake advanced economies to hold a dominant share of the world's gross domestic product (GDP) by 2014, research from PricewaterhouseCoopers (PwC) has suggested.

According to calculations by economists at the Big Four firm, economies of countries such as China and India will experience a slowdown rather than a contraction in 2009, whereas all of the major advanced economies are expected to shrink in the next year.

PwC's John Hawksworth described the projected GDP shift as "striking".

"Growth in China and India could slow to only around five to six per cent in 2009," he remarked, describing this as a "pretty respectable performance" when compared to the one per cent reduction in GDP the US, UK and Europe are expected to experience.

A previous report on the issue by PwC saw Mr Hawksworth note that the developing economies could soon be seen as destination markets themselves, rather than locations for low cost manufacturing. ADNFCR-1739-ID-18957607-ADNFCR