Friday, March 06, 2009

Reverse Migration

With recession hitting Europe and US many Chinese and Indians are thinking of returning to their nations. Tens of thousands of employees already left, and in next 6- 12 months about 1 lakh people are likely to return back.
So the domestic markets of China and India are likely to see improvement, and US market is likely to suffer.
Asian market has 33% dependence on US and Europe for GDP, hence it is likely that a prolonged recession in US and Europe would hurt the Asian Economies.
Indonesia has already received 35 billion dollars from World bank. The IMF and the World bank are likely to gain in this period with increased loan disbursals.
India has already seen its Public Debt of upto 80% of GDP and lowerred GDP growth of 5.3 % this fiscal.
The coming months would reveal how chronic is going to be the global recession.

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