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‘Smart Trade Group’– [Crisis Will Empower Emerging Markets]
Added: (Sun Jun 28 2009)
‘Smart Trade Group’ on why the developing economies will come out on top.
“Smart Trade Group” sources say that the current economic crisis will mark the turning point in the transfer of economic power from the Western economies to those of the East.
The Asian-based boutique brokerage apparently made its assertion in a scheduled email to clients in which it also cited figures which confirmed that last year, the energy consumption of the developing world surpassed that of the developed world for the first time.
This, said one of the “Smart Trade Group” sources, is a clear sign that even as emerging markets were dealing with the effects of the global credit crisis, they still had sufficient capacity in their economies to see demand for energy exceed that of far more established countries.
Although Western economies had far more sophisticated financial markets and systems as well as higher standards of living and education, emerging markets had better growth prospects, larger foreign reserves, less sovereign indebtedness, better GDP per capita growth, far more stable banking systems, superior household finances and savings rates all of which, the “Smart Trade Group” source concluded, made their markets a far better proposition than their debt-laden, consumer-driven counterparts in the West.