Developing nations headed for faster growth than developed countries: UNCTAD

The United Nations Trade and Development agency (UNCTAD), has reportedly said that the developing countries such as India, Brazil and Russia, will remain the key drivers of the world economy as they are headed for a much faster growth this year than the developed nations.

UNCTAD, in its annual global economy survey said that the developing countries would grow 4.5 percent to 5 percent in 2013 while the developed economies of the world would manage just one percent growth.

According to News24, transition economies like Russia, Ukraine, Kazakhstan, Azerbaijan and other former Soviet republics in Central Asia and the Caucasus are forecast to grow by 2.7 percent.

These countries, which have their richest members in the Bric- Brazil, Russia, India and China group of emerging economies, recorded similar growth rates in 2012, although the transition countries were starting to grow less quickly.

UNCTAD said that the developing nations' overall economic performance suggests that they will contribute about two thirds to total global growth this year.

The agency further said that China, India, Indonesia, the Philippines and Thailand boosted their own consumer demand through income policy measures and this could lift output growth across the region this year to 5.5 percent against 5.3 percent in 2012.

The agency further explained in its report that growth has been driven more by domestic demand in developing countries than by exports, as external demand from developed economies has remained weak, the report added.