HSBC: the largest emerging economies in 2011, inflation worries

HSBC Bank (HSBC) on Monday (10) released the study shows that the 4th quarter of 2010, HSBC Emerging Markets Index (EMI) rose to 55.7, due to Eastern Europe, India and China led growth in manufacturing production.

HSBC noted that studies have shown that emerging market growth accelerated in Q4, but the risk of inflation, and this is the biggest worry in 2011.

The bank said HSBC Emerging Markets Index for the first time the hidden inflationary pressures emerge, reflecting rising raw materials prices, the United States the impact of loose monetary policy, supplier inventory low, resulting in delayed delivery and sales prices .

HSBC said that emerging market index from a low of 54.2 last year, rose to 55.7 in Q4 last year, higher than the survey data of long-term average of 54.7; only the expansion rate is lower than the 4th quarter of 2009 and first half of 2010 to the level.

HSBC said that emerging market index rose, reflecting the manufacturing sector in 2010 and became more active in the last one quarter, while service sector growth has remained stable, both the expansion rate is almost the same.

HSBC Group chief economist Stephen King said that emerging market for manufacturing back to the temperature, to promote economic growth, the current tariff barriers to trade in emerging markets yet clear, there is a great global trade will be the scale of growth.