Emerging Markets Will Get Hit Hardest By Financial Crisis

Published on:

Tuesday, March 10, 2009

Written by:

Mike Caggeso

Emerging markets — not long ago the darling of investors — are likely to be hardest hit by the global slowdown. These economies are fragile, and not well equipped to deal with these circumstances. A catastrophe could be brewing for emerging markets, but the World Bank hopes to garner support — and hopefully help these markets avoid the worst of it. For more on this, read the following article from Money Morning.

The World Bank estimates that the global economy will likely shrink for the first time since World War II — at least five percentage points below potential — and emerging markets will suffer the hardest hits with severe long-term implications.

In its latest report, "Swimming Against the Tide: How Developing Countries are Coping with the Global Crisis," the World Bank says that 94 out of 116 developing countries have experienced a slowdown in economic growth. Of those, 43 have high levels of poverty.

And the most affected sectors are those that were the most dynamic not too long ago: Urban-based exporters, construction, mining and manufacturing — the result of shrinking global trade that’s on track to record its largest annual decline in 80 years.

 

Emerging Markets Will Get Hit Hardest By Financial Crisis

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