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India expanded at faster rate than China in Oct-Dec quarter: HSBC survey

11 Jan 2013 Evaluate

According to HSBC’s quarterly survey, economic growth in emerging markets slightly improved in the October-December quarter and among the BRIC (Brazil, Russia, India and China) nations, India expanded at a faster rate than China. As per the survey, the combined growth of manufacturing and service sectors of the major BRIC economies registered expansion in the fourth quarter of 2012, but is still well below the pre-crisis level. 

Representing the first upward movement since the first quarter of 2012 (January-March), the HSBC Emerging Markets Index (EMI) rose to 52.9 in the fourth quarter of 2012, from 52.2 in the July-September period. The slight bounce back was mainly on the back of expansion seen in manufacturing sector, though the service sector also witnessed an improvement over the previous quarter.

Further, as per HSBC, ‘although hardly buoyant economic growth, recent improvements are encouraging, especially as complemented by encouraging signs for the early months of 2013. Among four largest emerging economies, Brazil posted a return to growth following the previous quarter's stagnation, while Russia overtook India to post the best rate of output growth. On the other hand, China saw its growth improve; however remain relatively weak, whereas India posted a solid rate of expansion.

Moreover, reflecting weak demand from advanced economies mainly those in the euro-zone, new export orders for emerging markets manufacturers fell for a fourth consecutive quarter. However, total new orders in emerging economies have increased in the final quarter of 2012. Going forward, the 12-month outlook for service providers across the BRIC economies have improved slightly on the previous quarter, mainly due to optimism led by Brazil's service providers, followed by India.

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