India, China to drive boom in Asian economies: Singapore PM

Notwithstanding ups and downs, India and China will drive the boom in Asian economies in the coming years, Singapore Prime Minister Lee Hsien-Loong has said.

Speaking at the World Economic Forum (WEF) annual meeting here, he also noted that escalation of the European debt crisis would cause serious problems. "But there is a lot of momentum in the Chinese and Indian economies and that should help us to keep moving forward," Lee said.

Top economists and business leaders attending the WEF have also expressed optimism over the growth potential of India and China, amid gloomy global economic conditions.

"Emerging markets are doing well, there is still growth in China and India...," economist Nouriel Roubini, famed for his predictions on 2008 financial crisis, had said earlier.

In recent years, economic power has been shifting from developed nations to emerging markets. Going by estimates, emerging economies account for almost half of the world's gross domestic product.

According to eminent persoanlities at the WEF meeting, this shift would have an enormous impact on global consumption and investment patterns. In its latest report, the International Monetary Fund has projected India and China to clock growth rates of 7% and 8.2%, respectively, this year.

However, the global economy is expected to expand 3.3%, with the US being anticipated to grow 1.8% in 2012 while Europe could possibly see another recession, according to the IMF.