Tuesday, August 31, 2010

Global Economic Recovery Watch: India +8.8%

Financial Times (free subscription required) -- "India’s economy grew a brisk 8.8 per cent from April to June, its fastest pace in two-and-a-half years, highlighting the strength of India’s economic recovery despite high inflation now acting as a drag on consumer spending.

Growth during the first quarter of India’s April to March financial year accelerated from the 8.6 per cent last quarter, driven by robust manufacturing and services growth, and a pick-up in farm production."

9 Comments:

At 8/31/2010 10:54 AM, Blogger Buddy R Pacifico said...

India's inflation rate is about 14% and it's agricultural tariffs average 32%. U.S. agricultural exporters should expect Indian authorities to lower ag tariffs to fight inflation as is in the past.

Contrast India with Singapore: Singapore is growing at 24% rate with inflation of 2.3%!Exports are what is driving the Singapore economy --Hmmmmmmmm.

 
At 8/31/2010 11:31 AM, Blogger Benjamin said...

The USA and Japan have central banks that are pettifogging and giving sermonettes about inflation, even as both countries sink into deflation.

China, India are booming, and have aggressive central banks.

If you can move to Chna or Inda, I recommend it.

Japan's experience with tight money is 20 years of no inflation, some deflation, and property and stock markets that fell by 75 percent. Their economy has grown by 0.8 percent annually, while their currency has appreciated against every other currency in the world.

A strong yen and tight money have ruined Japan.

Tight shoes and tight money--look good on paper, but when you need to get going.....

 
At 8/31/2010 11:39 AM, Blogger Buddy R Pacifico said...

Peer Review of Benji's comment that stated "The USA and Japan have central banks that are pettifogging...": Huh?

 
At 8/31/2010 12:30 PM, Blogger James said...

The method of India’s success has not been lost on Russian Prime Minister Vladimir Putin. Tuesday he announced tariffs on automobiles will be raised in an effort to get production moved to Russia. “Come to us and set up production here" he said.

The world does very well exploiting free trade with the United States. The countries with which we are running a trade deficit are doing quite well. China is set to post GDP growth of 9.8%, Russia's GDP will gain 5% this year, Brazil will grow 7.1% and Mexico's economy will advance 7.6% this year.

We, on the other hand, are whistling past the double dip grave yard hoping not to be sucked in. Tariffs anybody?

 
At 8/31/2010 1:23 PM, Blogger sethstorm said...

India:
Their manufacturing industry is mostly acquisitions of First World assets. See Arcelor and Jaguar for examples.

Their services industries might as well be written as their offshoring industry. That, and a lot of fraud that gets excused in the name of landing work.

That 8.8 percent is mostly from taking work away from the US, UK, and EU without any replacement work for those developed countries such as the US, UK, and EU.

 
At 8/31/2010 4:23 PM, Blogger Buddy R Pacifico said...

In my first comment above I noted Singapore having high growth and low inflation. I left out an important detail. The U.S. has had substantial trade surpluses with Singapore the last couple of years. How can an Export economy have high growth and low inflation? Cheap imports from the U.S.! Virtually every other country should take note.

 
At 8/31/2010 7:24 PM, Blogger morganovich said...

mark-

this is a totally unrelated post, but i think you might want to read this article:

http://www.economist.com/node/16889262?story_id=16889262&CFID=142003467&CFTOKEN=55578138

disney is opening schools in china using interactive multimedia to aid instructors. the price: $1800/year.

that's not even 15% of per pupil expenditure in US public schools.

i suspect that the US teacher's unions will like this about as much as the AMA likes walmart clinics.

seems like a great "markets in everything" topic.

 
At 9/01/2010 6:42 AM, Blogger Vagabond said...

The world does very well exploiting free trade with the United States. The countries with which we are running a trade deficit are doing quite well.

Well, that was also true in the late 90s, but our economy was booming back then. Economic growth is about one thing, production. If we want economic growth, we need the producing class to start producing. That's not happening right now. Forget government spending, stop the bailouts, kill the unemployment extensions, and reduce corporate taxes to zero for American companies. That puts the means of production back in the hands of the workers.

 
At 9/02/2010 3:11 AM, Blogger bobble said...

those jobs that the U.S. unemployed are applying for . . . are going to india.

 

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