FINANCIAL CRISIS

China can help save world economy

07-27-2009 | AFP

Panama Star Such rates are relatively modest by their standards but stand out sharply as the United States, Japan and Europe are all mired in deep recession as their economies struggle through the fallout from the global financial crisis.

Chinese and Indian demand has largely kept raw material prices afloat this year -- a key plus for exporting countries such as Australia and Brazil -- while also offering hope against the prevailing gloom. The two countries "send out a positive message at a time when the trend is dark and this can help reassure the markets," said Michel Fouquin, international affairs analyst in Paris. But beyond this psychological comfort, China and India have only a marginal impact on the global economy.