News Analysis: Where will next wave of economic growth occur?

TIANJIN, Oct 1 (PNA/Xinhua) -- Amid worries about a global economic downturn, the 2008 Summer Davos forum, also known as the Annual Meeting of the New Champions 2008 of the World Economic Forum, concluded Sunday afternoon in the northern China metropolis of Tianjin.

The two-day global economic gala attracted some 1,400 entrepreneurs, officials and scholars from nearly 90 nations and regions.

Prior to forum, the International Monetary Fund adjusted its forecast for annual world economic growth from 4.9 percent down to 3.7 percent for the current year.

Despite that forecast, forum organizers did not change the theme from the Next Wave of Growth. This symbolized a sort of confidence. The forum became a platform for elites from all over the world to search for solutions to current difficulties.

But just where do they think the next wave of growth occur?

Many participants agreed that first of all the United States has to recover from ongoing Wall Street woes. Only when the United States improves could other nations follow suit and economic growth occur.

It is estimated that the strong driving force for the next wave of growth will probably come from traditional economic powers.

According to a report released by the forum, such first-tier cities as New York, London and Paris remain the favorite targets for investors.Tokyo, however, accommodated the most headquarters of leading global companies.

As Li Ruogu, governor of the Export-Import Bank of China, pointed out, "In the current financial crisis, China has chosen not to sell U.S. bonds. This marked a responsible attitude and indicated a hope for the U.S. to step out of the mire. It will benefit all."

Many people at the forum believed that emerging economies, including China and India, would play a larger role in the next wave of growth. Data released at the Forum showed that in terms of purchasing power parity (PPP), these emerging economies combined to account for two thirds of world economic growth.

Prof. Klaus Schwab, founder of the World Economic Forum, noted China would continue to play an important role in changing the world economic landscape. According to him, Chinese companies had already demonstrated that they were very competitive and performed very well in different areas.

A recent survey showed that investors had confidence in emerging metropolises like Shanghai, Beijing, Bombay, Dubai and Moscow. Tianjin will likely join them someday, as Airbus launched an aircraft assembly facility there.

The world economy would maintain growth and the growth rate would recover, EU Trade Commissioner Peter Mandelson observed. He believed the U.S. would embrace an economic resurgence in next few years, and a more balanced, multi-polarized global economy would emerge.