While Western counterparts are languishing in the worst recession since the 1930s, emerging economies, particularly China and India, have harnessed the global financial crisis in a better manner and have continued to power ahead. Increasingly, emerging economies are set to become an engine of global growth.

The global financial crisis has given new impetus to the idea that the world's economic center of gravity is moving from west to eastward. Emerging economies across the region rebounded from global slowdown much faster than developed economies, being driven by two engines—strong domestic demand and exports. The region's development augurs sustainability of growth and domestic consumption rather than overwhelming dependency on exports. Looks like Asia's time has come as the transformation that has taken place in the region over the last decade has been truly noteworthy. The center of growth is moving from the West to Asia in the global economy. Obviously, emerging Asia is becoming the showpiece of a whole new global trade pattern.

In the history of global recovery from the downturn, it is the first time Asia is making a stronger contribution to the global recovery than any other region. In all previous recessions, the contribution of the region was lower than that of other regions. Moreover, domestic consumption is reinforcing the region's growth rather than exports. Besides, strong consumer confidence, booming asset values and strong improvement in employment conditions are behind sustainable economic development. There has been a surge in capital inflows and the IMF sees this as a vindication of sound economic policies pursued by many Asian countries.

The Analyst Magazine, Asian Economies, Global Financial Crisis, Emerging Economies, Domestic Consumption, Economic Development, Economic Policies, Global Market Capitalization, Gross Domestic Product, GDP, Organisation for Economic Cooperation and Development, OECD, European Economies, Sovereign Credit, Financial Sectors.