Skip to main content

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated Cookie policy, Privacy policy and Terms & Conditions

Asia’s Stifled Services

The eurozone crisis has dominated policy discussion over the last few years, but the economic slowdown in Asia’s two giants – China and India – has become a growing source of public concern as well. Maintaining growth in the face of a global slowdown is a daunting task, and it requires rethinking the future of “factory Asia.”

MANILA – The eurozone crisis has dominated discussion among policymakers over the last few years, but the economic slowdown in Asia’s two giants – the People’s Republic of China (PRC) and India – has become a source of growing public concern as well. How worried should we be about an additional drag on the global economy?

After years of double-digit GDP growth, the PRC’s economy is decelerating. At the Asian Development Bank, we predict that its growth will slow to 7.7% this year, from 9.3% in 2011. The PRC’s population is aging, real wages are rising, and growth is moderating toward more sustainable rates.

India, too, has massive potential to grow fast and reap a demographic dividend, but it has been struggling with structural reform. We expect that India’s expansion will slow to 5.6% in 2012, from 6.5% last year.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.


Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.;
  1. elerian122_Peter MacdiarmidGetty Images for Somerset House_bigdatascreentechman Peter Macdiarmid/Getty Images for Somerset House

    Adapting to a Fast-Forward World

    Mohamed A. El-Erian

    The world is going through a period of accelerating change, as four secular developments illustrate. Firms and governments must make timely adjustments, not only to their business models and operational approaches, but also to both their tactical and strategic mindsets.

  2. roubini137_Mikhail SvetlovGetty Images_xi putin Mikhail Svetlov/Getty Images

    The White Swans of 2020

    Nouriel Roubini

    Financial markets remain blissfully in denial of the many predictable global crises that could come to a head this year, particularly in the months before the US presidential election. In addition to the increasingly obvious risks associated with climate change, at least four countries want to destabilize the US from within.

  3. tharoor137_ Hafiz AhmedAnadolu Agency via Getty Images_india protest Hafiz Ahmed/Anadolu Agency via Getty Images

    Pariah India

    Shashi Tharoor laments that the government's intolerant chauvinism is leaving the country increasingly isolated.