88Macroeconomic and Monetary Developments: First Quarter Review 2008-09
expected to remain the key factor in supporting the global economy and incushioning global downturns mainly because of their limited direct exposure tosub-prime related securities. Consumption activity supported domestic demandin other emerging Asian economies while export growth began to show somesigns of moderation. The strength of domestic demand in the region combinedwith rising food and energy prices, however, led to the build-up of inflationarypressures in a number of countries in emerging Asia. Apart from the possibilityof further credit crunch, downside risks to global growth, therefore, includecontagion from the likely US recession, increased inflationary pressures drivenby rising food and energy prices, and persisting global imbalances.
Table 53 : Select Economic Indicators - World
I. World Output (Per cent change) #
220.127.116.11.45.15.04.13.9(1.9)(2.6)(4.0)(3.4)(3.9)(3.7)(2.6)(2.6)i)Advanced Economies18.104.22.168.63.02.71.71.4ii)Other Emerging Market andDeveloping Countries22.214.171.124.17.98.06.96.7
II. Consumer Price Inflation (Per cent)
i)Advanced Economies1.51.82.02.126.96.36.199.3ii)Other Emerging Market and Developing Countries188.8.131.52.184.108.40.206.4
III. Net Capital Flows* (US $ billion)
i)Net Private Capital Flows (a+b+c)**89.8168.6241.9251.8231.9605.0330.7441.5a) Net Private Direct Investment157.2166.2188.7259.8250.1309.9306.9322.4b) Net Private Portfolio Investment-92.2-13.216.4-19.4-103.848.5-72.231.0c) Net Other Private Capital Flows220.127.116.113.387.5248.898.090.0ii)Net Official Flows-0.6-50.0-70.7-109.9-160.0-149.0-162.3-149.8
IV. World Trade @
V. Current Account Balance (Per cent to GDP)
i)US-4.4-4.8-5.5-6.1-6.2-5.3-4.3-4.2ii)China18.104.22.168.29.411.19.810.0iii)Middle East4.88.311.819.720.919.823.019.4P:IMF Projections.#:Growth rates are based on exchange rates at purchasing power parities. Figures in parentheses are growth ratesat market exchange rates.*:Net capital flows to emerging market and developing countries.**:On account of data limitations, flows listed under ‘Net Private Capital Flows’ may include some official flows.@:Average of annual percentage change for world exports and imports of goods and services.
: World Economic Outlook, April 2008; World Economic Outlook Update, July 2008, International Monetary Fund.