India and other emerging markets such as China have done well to post high growth rates and yet closely manage inflationary pressures in their economies, according to Angel Gurria, Secretary-General of the Organisation for Economic Cooperation and Development.
Speaking to a small group of journalists on the margins of the annual World Bank-International Monetary Fund meeting here, Mr. Gurria said there was no doubt that India and China were engines of growth for the world economy.
These two economies continued to play a “locomotive role” and they were “the ones who make the averages a little better,” he said, adding that when economic growth rates dropped from double digits to somewhere between 7 and 9 per cent “that still does not feel like a recession.”
He noted that on the contrary, Europe was growing at less than two per cent and the United States' growth was “very flat.”
His remarks came in the wake of a week of market turmoil in the U.S., following the U.S. Federal Reserve signalling a lack of confidence in the recovery.
Mr. Gurria also praised India's management of inflationary pressures. In response to a question from The Hindu he said, “India, which is being careful with its price stability, has been tightening [its monetary policy].”
Arguing that it was important for India and China to grow in a way that was sustainable and they ought to avoid false starts, Mr. Gurria said “if you have a lot of poor people in your country you have to be careful about the price situation.”