Bloomberg reports that Asia dominates an exclusive list of economies expected to sustain growth rates of 7%. According to a research report by Madhur Jha, Standard Chartered’s India-based head of thematic research, and Global Chief Economist David Mann, India, Bangladesh, Myanmar, Vietnam and the Philippines along with Ethiopia and Cote d’Ivoire will reach this benchmark in the 2020s.
Factors that favor the pace of economic growth are:
- Export- or supply-driven commodity boom
- Recovery period after intense political or economic weakening
- Overheating, including real estate or monetary expansion
- Export-oriented industrialization, especially in manufacturing
China is missing from “the 7% club” because of a slowdown in economic growth and a progression toward higher per-capita incomes. Standard Chartered estimates that China will keep up a 5.5% growth pace in the 2020s.
The report also notes that the 7% economies tend to have savings and investment rates of at least 20-25 percent of GDP.
