Skip navigation
Capital Slowdown
Report

Capital Slowdown

Investment growth in emerging market and developing economies has been sluggish since 2010

IMF, 2017

auto-generated audio
auto-generated audio

Editorial Rating

7

Qualities

  • Overview
  • For Experts
  • Hot Topic

Recommendation

Investment growth in the emerging and developing economies sank precipitously between 2010 and 2016, and the rate in 2016 fell far short of the double-digit gains posted before the 2008 financial crisis. In this brief but illuminating article, economists M. Ayhan Kose, Franziska Ohnsorge and Lei Sandy Ye explore the reasons for the ongoing low investment, why that development makes it difficult for these countries to reduce poverty and how governments can spur investment. getAbstract recommends this expert analysis to investors and executives.

Take-Aways

  • Investment growth in the emerging and developing economies has declined from 10% in 2010 to less than 3.5% in 2016, and the slump is widespread.
  • Several factors, including low commodity prices and increased market volatility, have contributed to weak investment growth in these nations.
  • Economic slowdowns in China and other major economies have had adverse spillover effects on the developing and emerging markets.

About the Authors

M. Ayhan Kose is a director at the World Bank, where Franziska L. Ohnsorge is a lead economist and Lei Sandy Ye is an economist.