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| China-Japan-Koreas |
| Emerging economies are decoupling from China, helping them stay strong despite rising interest rates, market veteran says |
| 2023-07-06 |
| [Business Insider] Due to the recent weakness in China this year, Wall Street largely expected most other emerging economies to follow, he noted. Meanwhile, rate-hiking cycles in the 1980s and 1990s triggered crises in emerging markets, and analysts expected the latest tightening campaign to produce a similar results. But except for a few instances, that didn't happen. "Among the 25 largest emerging economies, three-quarters of those reporting data have beaten growth forecasts this year — some, including India and Brazil, by a wide margin," the chair of Rockefeller International wrote. "Forecasts for global growth in 2023 are rising and most of that uplift is coming from emerging economies." Many developing nations entered 2020 with improved fiscal discipline and stronger banking systems compared to prior decades, Sharma said. So when the pandemic hit, they didn't have to borrow as much money to pay for stimulus spending, with their deficits rising on average by 15% of GDP from 2020 to 2022, just half as much as the US' did, he pointed out. "The old notion that 'emerging' is another word for reckless no longer applies," he wrote. And, compared with the Federal Reserve, emerging-market central banks did not delay in tightening their monetary policy. Such early intervention now allows many to start cutting interest rates, while the US looks to possibly hike two more times this year, he added. |
| Posted by:Besoeker |
| #3 Like decoupling from a hungry alligator. |
| Posted by: Super Hose 2023-07-06 12:10 |
| #2 Yes it was, B. Oh look, squirrel!! |
| Posted by: Mullah Richard 2023-07-06 10:41 |
| #1 "Forecasts for global growth in 2023 are rising and most of that uplift is coming from emerging economies." "Decoupling from China"...? Wasn't that a key Trump initiative as well ? |
| Posted by: Besoeker 2023-07-06 08:44 |