‘US recession not to affect emerging economies’

October 22nd, 2008 - 1:15 am ICT by IANS  

Kolkata, Oct 21 (IANS) The US recession will not affect the GDP growth of the emerging economies, an analyst said here Tuesday.”The emerging countries will be less affected as their economies are different from that of the US or the developed nations,” Anand Rathi, chairman of the Anand Rathi Group said.

Governments around the world are acting in concert and they would not allow the situation go out of hand, he said.

“The Indian economy is not badly affected. The manufacturing sector also is not badly affected,” Rathi said.

This year, he said Indian GDP growth will be around 7 to 7.5 percent as ongoing projects will continue but no new projects will be taken up - which will affect the GDP growth next year.

He said there was no problem with the Indian banking system. The risk management by Indian banks, he said, was “excellent”.

He also predicted inflation might go below five percent early next fiscal as the commodity prices will not go up further.

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