Monday, 8 October 2012
Emerging Markets Invest in Infrastructure to Ensure Growth
And after nearly two decades of robust growth, China’s economic progress is beginning to taper off. Many experts believe that the current economic slowdown experienced by China, is partly their own fault. As the economy in the United States and European Union remains slow (the 2 major trading partners of China), it has become apparent that the Asian economic giant (China), has become overly dependent on their major trading partners, and must now focus their attention; on the domestic front.
In order to maintain economic growth around the World, it is time for emerging markets like India, Russia and Indonesia, to drive global growth forward; today and into the future. However, growth in these emerging markets will not be possible, without an integrated inland transportation service to handle the ever-increasing flow of containers; coming from mainland factories. Thankfully these nations have recognized the importance of shipping containers to emerging markets, and have repeatedly made investments into their own ports, vessels and infrastructure, to ensure their country's long-term prosperity, economic growth and future development.
Officials at all levels of government and in the private sector have highlighted the importance of investing in an inter-modal transportation system. In most instances, a fully integrated transportation system, remains their top investment priority. For example, China spends a whopping 18.5 percent of its GDP on logistics costs, compared to about 10 percent in the United States and Europe.