Mark Gill, Julian Winser and Schroders’ chief economist Keith Wade. (Picture by Tom Tardif, 0905203)

THE emerging markets hold the key to a gradual global economic recovery, according to economist Keith Wade.

The chief economist of the Schroders Group was in Guernsey last week to give his outlook for the year ahead and to outline what issues he believed would shape the anticipated recovery.

‘Emerging markets and their continued contribution is very significant on a global scale,’ said Mr Wade.

‘Although they only represent a quarter of the world economy, they have actually contributed half of the growth at the margin.

‘That’s important and I think it will continue because the emerging economies haven’t got the imbalances or the problems with their banks that we have in the West.’

Mr Wade said reducing unemployment was also important for sustainability of the global economy and the signs were that the number of people out of work was reducing in the US and the UK.

‘The number of temporary jobs in the US has increased considerably, which is usually a leading indicator for more permanent job growth, which is encouraging.’

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