Focus moves South and East | Bangkok Post: business

ECONOMY & TRADE

Burgeoning trade and investment links between China and India with the Middle East, Africa and Latin America are creating a new world economic powerhouse that will overtake the United States and Europe over the next three to four decades, says Stephen King, HSBC's chief economist.

The dismantling of investment and transport barriers between large emerging economies such as the BRICs (Brazil, Russia, India and China) will allow trade and capital flows among the regions they occupy to grow tenfold over the period, he said.

The development in the 21st century among the emerging economies would be similar to the explosion in trade between the US and Europe in the 1950s and 1960s, Mr King said at the launch of his report titled "The Southern Silk Road".