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(South China Morning Post)
Updated: 2007-07-31 14:34

China and India were the new engines of world economic growth, replacing the United States and other developed countries, International Monetary Fund (IMF) managing director Rodrigo Rato said on Tuesday.

He said China overtook the United States this year to become the biggest contributor to world economic growth.

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"For the first time, the largest contribution to global growth will now be made by China," Mr Rato told a business conference in the Philippines. "Looking ahead, we expect this pattern of growth to continue ... we expect China - and increasingly India - to grow in importance as engines of global growth."

He said China would grow more than 11 per cent and India at about 9 per cent this year, with almost equal rates next year.

After slowing down, the US economy would "regain momentum gradually as the drag from the current housing correction and the softness in the business sector dissipates".

"Prospects in Europe and Japan remain good," Mr Rato added, without giving specific figures. "The outlook for the global economy is generally good and the economic prospects of most countries in emerging Asia are also good."