News

08/03/2012 - 05h17

Ge expects Latin America to lead growth drive as China slows down

General Electric expects revenue growth in its industrial business in regions such as Latin America to outpace that of its traditional growth engine of Asia, led by China and India, in 2012.

With China's growth decelerating from its peak of more than 10 per cent, GE said it expected its business in resource-rich regions such as Latin America, the Middle East, Africa and Australasia to grow 20 per cent to 25 per cent compared with 10 per cent to 15 per cent for Asia.

"From a small base we will grow a lot," said Reinaldo Garcia, head of GE's Latin America business. "When you think about Latam, with the 34 countries, we have now a lot in Brazil and Mexico. We have done less in the other countries - and now we are really putting efforts and resources into developing these opportunities in these other countries as well." GE, one of the world's biggest companies and a bellwether for the health of the global economy, said although China remained a vital market with robust growth across its main businesses, the trend underlined the growing importance of other regions as its economy matures.

China this week cut its annual growth target for the first time in eight years, recognising that the world's secondlargest economy will slow. Chinese premier, Wen Jiabao, said the government's target for growth in 2012 was 7.5 per cent, the first time it has dropped below 8 per cent since 2004.

GE, as part of its global growth strategy, is predicting 50 per cent of its industrial revenue will come from growth markets in the next 10 years compared with 37 per cent last year.

Latin America is already one of the company's biggest regions in terms of absolute sales outside of the developed countries and is one of its fastest growing, with revenue from its industrial business - its main focus - up 36 per cent last year compared with 29 per cent for China. Latin American revenue from its industrial business was bigger than that of China last year at $6.6bn against $5.8bn

Financial Times | Londres/AC

Other news

  • 18/04/2011 - 04h56

    Amper Aims to Break Even by 2013 on Growth in Latin America, Middle East

    Amper SA, a Spanish maker of communications equipment, aims to break even within three years as sales and profit from Latin America offset declines in its domestic market, Chief Executive Officer…

  • 12/04/2011 - 13h06

    Cencosud Declines Most in Latin Index on $2 Billion Share Sale for Growth

    Cencosud SA Chairman Horst Paulmann. Photographer: Morten Andersen/Bloomberg Cencosud SA, Latin America’s third- biggest retailer, fell the most among stocks in the region’s benchmark index after…

  • 15/04/2011 - 01h33

    Freedom of expression at risk in Latin America

    Freedom of expression is at risk across Latin America, with journalists being killed, kidnapped, threatened and prosecuted. And, in several countries, there is impunity for crimes against…

  • 12/04/2011 - 16h57

    China Aims to Lift BRICS Profile

    BY OWEN FLETCHER BEIJINGChina this week will host a summit of leaders from the so-called BRICS countries as it looks to boost the group’s profile as a platform for emerging economies to gain…

  • 14/04/2011 - 22h31

    G-20′s Efforts on Growth Stall

    By BOB DAVIS The Group of 20′s flagship effort to bolster global growth is floundering and unlikely to get much of a lift from a conference of its finance ministers in Washington Friday. View Full…

Read other news »