will-asia-remain-immune-to-us-credit-woes

Will Asia remain immune to US credit woes?

A recession in the US remains a threat to emerging economies, but Asia is less susceptible due to infrastructure investment and local demand for consumer products.
Thus far, the emerging markets have largely ignored the economic slowdown and financial turmoil in the US. Although economies are even more tightly linked by trade and financial flows than in the past, the US is no longer the only locomotive pulling the train. Last year, China accounted for 30% of the increase in world GDP on a purchasing-power parity PPP basis, which is defined by the actual purchasing power of a country's currency rather than its official exchange rate, compared with only 12% for the US. This year, the slower US growth will reduce its share to only 9%, while China's share will rise to 33% and India's to 12%.

Although...
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