LANKA-PRANAB 2LST

Mukherjee said the depressed state of the global economy
also translated into considerable loss of export demand for
the developing countries.

Exports of non-oil from developing countries are expected
to decline by about 900 billion dollars in 2009, he said.
They will remain well below the earlier projected
trajectory for several years, Mukherjee said, adding this was
bound to reduce production, incomes and employment in the
developing countries.
"To resuscitate growth in the developing countries, we
have to replace lost export demand by expanding other
components of domestic demand," the Indian Minister said,
adding the best option was to expand investment.
"An obvious area where additional investment is required
is infrastructure, including energy, transport and other
public services. These investments can be made ahead of
requirements and therefore are an ideal form of
countercyclical activity," Mukherjee said.
Mukherjee said the World Economy was showing signs of
recovery after being in the doldrums for nearly 2 years.
As per an IMF report, the global output is expected to
expand by 3.1 per cent in 2010, he said.
While the developed countries as a group were targeted to
grow by 1. 3 per cent, emerging and developing economies were
slated to grow by 5.1 per cent, he said.
The global trade is expected to increase by 2.5 per cent
after falling by nearly 12 per cent in 2009.
"The risks however, remain and the recovery would be
razor edge walk, especially because signs of asset price
bubble and heightened carry trade activity are re-emerging,"
Mukherjee told the gathering. PTI TVS
DDC


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