Monday, March 25, 2013

Emerging markets depends on China

ET Now: Experts do expect the US to clock 4% GDP growth this year and it is trading near record highs. Do you see this factor limit a lot of fund flows to emerging markets?

Marc Faber: For emerging markets, the crucial issue is only China. If the Chinese economy blows down meaningfully or even goes into recession, which is a possibility, then obviously all resource producers of the world will be badly affected. If the economy slows down, obviously the demand would decline and commodity prices would come down and bring about a more hostile environment for the resource producers. I do not pay so much attention to the US or the European economies with respect to emerging markets. The key is really China. - in ET Now


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