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...depends on its depth and duration. A mild, relatively short U.S. downturn might not be entirely a bad thing in the country that's become the world's second growth engine: China. Most economists believe inflation remains China's biggest risk going forward, and a slow down in the export sector - now unavoidable - could actually do the People's Bank of China's work for it: cool the economy a bit without the need for another rise in interest rates. (The PBOC raised rates six times...

Author: /time Magazine | Title: World Markets Catch a US Cold | 1/23/2008 | See Source »

...Asia, Africa and Latin America, these past five years have seen the best growth run in memory, and so far signs of slowdown outside the U.S. and Europe are few. India and China are posting astonishing growth numbers, while economies of countries from Africa to Latin America that export raw materials, like oil from Nigeria and copper from Chile, have benefited from high commodity prices - themselves a function of the Asian giants' performance. "The economic bleakness in the West I don't think is matched by economic bleakness in the East," says Kamal Nath, India's Minister of Commerce...

Author: /time Magazine | Title: Can the World Stop the Slide? | 1/23/2008 | See Source »

...share prices offered another kind of correction: that growth in Asia isn't enough to protect its markets against the effects of a U.S. recession. So while shares in China soared last year, "the idea [it] can decouple and not be affected by what happened in their most important export market [the U.S.] was always rubbish," says Stein, so long as domestic consumption can't make up for any shortfall. And neither is Asia resistant to fallout from the subprime snafu either. Analysts speculated Monday that Chinese banks could soon cough up to huge losses linked to exposure...

Author: /time Magazine | Title: The Fed Reacts to a Global Crisis | 1/22/2008 | See Source »

...hosts were only too eager to emphasize, when they weren't announcing a new hydrogen plant, almost every projection of energy use over the next several decades says that fossil fuels aren't going anywhere. Abu Dhabi will develop hundreds of megawatts of clean solar power, but it will export far more polluting power in oil - because the world will need it and there is nothing else feasible to replace it. "The World Future Energy Summit is nothing less than the future of the world itself," said Jonathan Porritt, founder of the UK sustainability organization Forum for the Future...

Author: /time Magazine | Title: An Oil Giant's Green Dream | 1/21/2008 | See Source »

...growth. Beijing hopes this will help reduce social tensions by promoting more equity in income distribution and access to consumer goods, including housing, through increasing rural subsidies and other measures. The government also has recently intensified its rebalancing efforts by allowing somewhat faster exchange-rate appreciation and imposing some export taxes...

Author: /time Magazine | Title: Finding the Right Balance | 1/17/2008 | See Source »

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