IP duo on coming of age for developing economies

PARKS & NEWMAN INTERVIEW

Stuart Parks, head of Asian equities at Invesco Perpetual, and Dean Newman, the group's head of global emerging markets, discuss the prospects for China and the outlook for the world's developing economies.

Is 8% GDP growth really achievable for China this year? Stuart Parks: Real indicators of economic growth – for example, power production – are actually very strong at the moment so, from what we are seeing, 8% growth is eminently achievable. As important as the actual number, however, is the composition of that growth. What we will see is less of an emphasis on fixed asset investment growth and instead the return of exports as a significant contributor to the overall GDP pie. Domestic consumption is also likely to grow in importance. How significant is the shift from export-led to do...