Tesco
A Ride in Rough Waters
Article

A Ride in Rough Waters

Emerging markets buoyed the world after the global financial crisis, but are now in a major slowdown.

Raju Huidrom, M. Ayhan Kose and Franziska L. Ohnsorge
Finance & Development Magazine, 2016
Read the article

Read or listen offline

auto-generated audio
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
auto-generated audio

Editorial Rating

7

Qualities

  • Analytical
  • Well Structured
  • Overview

Recommendation

After the 2008 financial crisis, the largest developing markets – Brazil, Russia, India, China and South Africa (BRICS) – provided a counterbalance in economic growth to the lagging developed countries. But then the BRICS saw their advancement start to decelerate. In this incisive analysis, economists Raju Huidrom, M. Ayhan Kose and Franziska L. Ohnsorge point out how the BRICS countries’ extensive economic integration causes their growth declines to reverberate regionally and around the world. getAbstract recommends this focused and information-packed report to executives, investors and others watching the global economy.

Take-Aways

  • Growth in the biggest emerging market economies began decelerating in 2010, particularly in four of the five BRICS countries – Brazil, Russia, China and South Africa – with India being the anomaly.
  • The emerging market slowdown could spill over into the larger world economy, transmitting itself over “trade and financial channels and through commodity prices.”
  • A BRICS growth decline of 1% could, over time, reduce global growth by 0.4%.

About the Authors

Raju Huidrom, M. Ayhan Kose and Franziska L. Ohnsorge are economists at the World Bank.

Comment on this summary or Start Discussion