Monday 28 May 2018

Emerging markets to lead economic recovery: HSBC

Dubai, October 7, 2009

HSBC has launched the largest survey of emerging markets economic data which suggests that emerging markets are likely to lead the global economic recovery.

The HSBC Emerging Markets Index (EMI), compiled with data from over 5,000 purchasing managers from companies in 13 countries, is a powerful indicator of the economic and business health of the world’s emerging and fast growing markets.

This new index shows that emerging markets output in Q3 recorded a robust rise and that forward indicators point to further improvement in Q4.

“As the world’s economic centre of gravity shifts from West to East, the economic strength of emerging markets will play an increasingly central role in the development of financial markets and international relations. The HSBC Emerging Markets Index provides a unique snapshot of the economic heartbeat of emerging markets,” stated Stephen Green, Group chairman of HSBC Holdings.

HSBC, which serves over 100 million customers in 86 countries and territories, was founded in Hong Kong and Shanghai in 1865. It is the world’s largest international emerging markets bank. It is the leading international bank in China, the largest international bank in Asia and the Middle East and has more than 4,000 offices across Latin America.

“It makes perfect sense for HSBC to create this powerful economic indicator. As I travel through Asia, Latin America and the Middle East this month, it is clear to me that these economies have real dynamism and momentum today compared to some misfiring economies in the West. The first ever HSBC Emerging Markets Index shows that emerging markets continue to power the growth in the global economy,” added Michael Geoghegan, Group chief executive of HSBC Holdings.

The HSBC EMI surged from 50.7 in Q2 to 55.3 in Q3, signalling the strongest quarterly increase in emerging market manufacturing and service output since Q2 of last year. The index has rebounded sharply from an all-time low of 43.8 recorded in the final quarter of last year and 44.3 in Q1. Any reading below 50 indicates a contraction of output during the quarter while readings above 50 signal expansion.

'Although the US remains the most important trading partner for many emerging nations, its relative importance is declining. We now expect emerging nations to see economic growth of 6 per cent next year while the developed world will expand by only 1.8 per cent,' said Stephen King, HSBC’s chief economist.

The HSBC EMI is calculated using the long-established and highly credible PMI data produced by global financial information services company Markit. HSBC recently announced a partnership with Markit to sponsor and produce a number of emerging market PMIs.

The next Emerging Markets Index will be on January 7.-TradeArabia News Service

Tags: banking | economy | HSBC | finance | Crisis | Emerging Markets Index |

More Economy Stories

calendarCalendar of Events