Despite huge growth, trouble looms for emerging markets

With the global emerging markets (including Asia) being home to three quarters of the world's population, the investment potential for these countries is tremendous. For 2006, real GDP for global emerging markets growth is more than 6% compared to 3% in advanced economies. Aggregate current account surplus is greater than 1.7% of GDP compared to -1.7% in advanced economies. Fiscal deficit is just -0.6% of GDP compared to -3.1% in advanced economies and inflation has fallen from a 1988-97 average of 53.5% to 5.4%. The acceleration of industrialisation in China and India, domestic deregul...