WASHINGTON, May 8 (UPI) -- Economic growth in Asia is expected to slow down this year as emerging markets in the region have peaked.
Specifically, growth in China and India is expected to lose steam, with the two countries having spent the past few years expanding at record-breaking rates.
That was the conclusion reached by the Washington-based Institute of International Finance in its latest study Tuesday. Having grown each year since 2001, GDP growth in the region is expected to slow down to 8.2 percent in 2007, from 8.6 percent posted the previous year.
The group that represents nearly 400 private international financial institutions remained bullish about the region, however. It pointed out that while both China and India will see "slightly slower growth," that will "not diminish their remarkable dynamism or alter their rising influence on the rest of the world."
The IIF did, nevertheless, caution against Asian countries in general from depending too much on export-driven growth.
"The consequences of relying on an export-led growth and development strategy, however, are once again becoming evident for many of the emerging markets in Asia. While the governments have been successful in sustaining current account surpluses and building up record reserves, growth in the five economies most seriously affected by the regional financial crisis has been trailing their global peer group for four years," said Yusuke Horiguchi, the institute's chief economist.
