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Instead, India is mired in a deepening crisis of confidence. Asia’s third-largest economy is widely regarded as performing below its potential.
Indians are losing hope that their country’s fractious political system will deliver the policies that might unlock a rebound — investments in roads, ports and other projects and lighter regulations to attract more foreign investment.
One encouraging corner of Asia has been Japan’s economy, the world’s third largest. It grew at an annual rate of 4.1 percent in the first quarter of 2012 as it recovered from last year’s earthquake and tsunami. But factors that could crimp expansion, such as weaker European demand for Japanese exports, have raised fears that Japan’s growth will slow or even stall.
In Brazil, the economy practically stalled in the first quarter of the 2012. It grew at just a 0.2 percent annual rate from the final three months of 2011, the government said Friday. That was below expectations of 0.5 percent growth. Flooding punished farmers.
But Brazilian officials, like analysts in China, also pointed to another culprit, one that shows how problems in one part of the world cause problems in another: The ongoing trouble in Europe is taking a toll on exports.
AP Staff Writers Joshua Freed in Minneapolis, Harold Heckle in Madrid, Sarah DiLorenzo in Paris and David McHugh in Frankfurt contributed to this report.
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