Is Asia's Economic Growth a Given?
Asian economic growth is becoming increasingly driven by international consumers and this will eventually make the Asian market much more profitable than the West, according to Puru Saxena from Puru Saxena Wealth Management.
“It’s just simple economics,” Saxena told CNBC.
Those who produce and export their goods and services to the whole world "go home with the money and eventually the riches, and people who live beyond their means and borrow and consume tomorrow’s consumption today eventually have to pay back,” he added.
But Asia's economic growth may not necessarily be a given, as forecasters misjudged success of other emerging countries such as Brazil and Japan in the past, according to Roger Nightingale from Pointon York.
“What happens with all these countries is they grow for a certain amount of time and then, for reasons which none of us can forecast, they hit the buffers, and they stop,” Nightingale said.
“It hasn’t happened to China yet, but it’s probably going to; the phenomenon will occur,” he said, adding that he would be “reluctant to forecast an extrapolation of the straight line trends for as long as ten years.”
- For the full interview watch the video above