Asia to lead global growth in 2010 - Young

Aberdeen's Hugh Young believes Asia will lead global growth in 2010, pulling other emerging markets along with it.

Young, managing director of Aberdeen Asset Management Asia, says while developed countries increasingly suffer the effects of fiscal indebtedness, Asia will continue to decouple as domestic demand grows and reliance on exports is reduced. However, if the West experiences a relapse, Asia will not escape unscathed, Young warns. Regional economies still depend on demand from the west for manufactured exports as well as inward fixed and portfolio investment. This has been reflected in the import of "very loose" US monetary policy through fixed exchange rates pegged to the dollar. Despite ...