Emerging economies to beat G7 growth

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http://www.guardian.co.uk/business/2011/aug/04/four-emerging-economies-growth-to-outstrip-g7

The world's four biggest emerging economies are expected to account for a larger proportion of global growth over the next two years than the seven leading industrial nations, according to a report published on Wednesday.

Despite accounting for only 17% of global GDP in 2010 the so-called Bric nations (Brazil, Russia, India, China) are expected to account for 40% of the expansion of the world economy this year and in 2012.

A report published by PricewaterhouseCoopers predicted that higher interest rates and budget deficit reduction would lead to sluggish growth in the G7, with the US, UK, Germany, Japan, France, Italy and Canada contributing 34% of global GDP.

Richard Snook, a consultant at PwC, said: "The key headwinds to growth will be fiscal consolidation and private sector deleveraging in the developed world, whilst emerging markets are tightening monetary policy to rein in inflation."