Nomura: China, India to account for half of world growth in 2011

Nomura Holdings says China and India together would account for half of the 4.3 per cent global growth next year and that the emerging markets would account for three quarters of it.

Nomura's views were expressed by Robert Subbaraman, Hong Kong-based chief economist for Asia excluding Japan at Nomura Holdings Inc who presented his views on the outlook for Asian economies in 2011 in a teleconference call today.

Talking about global and Asian growth Subbaraman said: ''For the advanced countries, it's going to be sluggish growth again next year. Not a double-dip, not a recession -- because we think the policy makers will do whatever it takes to avoid that happening.''

''Of that 4.3 per cent global growth, China and India would account half of it, and the whole of the emerging market will account for three quarters of it. So it would really show you how emerging markets, led by Asia, are driving global growth.''

''We reckon Asia, excluding Japan, can now grow at its full potential even with the G-3 economies growing at only 1 to 2 per cent.''

Elaborating on China's growth, Subbaraman said: ''For China, we are bullish, we are expecting 9.8 per cent growth next year.''