The uber economists at the IMF are forecasting global growth to slow down as the effects of the US subprime mess affect other parts of the world. It goes back to the same argument that US consumption represents $9.6 trillion in demand annually, whereas Chinese and Indian consumption represents only $1.6 trillion combined. At the end of the day, who'll buy all this stuff if Americans don't? We'll see...it's good to note that the IMF believes African growth will increase this year despite it all. What follows are a table of IMF predictions and a blurb on emerging economies:
Emerging markets and developing countries
Despite some slowing of export growth, emerging market and developing countries have thus far continued to expand strongly, led by China and India. These countries have benefited from the strong momentum of domestic demand, more disciplined macroeconomic policy frameworks, and in the case of commodity exporters, from high food and energy prices.
Growth in emerging market and developing countries is also expected to ease, moderating from 7.8 percent (annual basis) in 2007 to 6.9 percent in 2008. In China, growth is projected to decelerate from 11.4 percent to 10 percent, which should help alleviate overheating concerns.
But growth in Africa is projected to pick up to 7.0 percent from 6.0 percent in 2007.