Emerging Markets in Transition: Growth Prospects and Challenges

Author/Editor: Luis M. Cubeddu ; Alexander Culiuc ; Ghada Fayad ; Yuan Gao ; Kalpana Kochhar ; Annette Kyobe ; Ceyda Oner ; Roberto Perrelli ; Sarah Sanya ; Evridiki Tsounta ; Zhongxia Zhang
Publication Date: June 12, 2014
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Summary: After a short-lived slowdown in the immediate aftermath of the global financial crisis and a swift rebound, emerging markets (EM) are now entering a period of slower growth. In fact, growth is now lower than the post-crisis peak of 2010-11, as well as the rates seen in the decade before the crisis. This raises the question of whether EMs can bounce back to the growth rates seen in the last decade or whether their prospects are dimmer than thought a few years ago. This SDN we will explore the drivers of the slowdown, how changes in external conditions that supported high growth in EMs will affect them over the medium term, and the policy priorities needed to sustain the growth rates seen in the past decades. In doing so, the paper differentiates EMs along various dimensions (e.g. degree of commodity dependence, trade and financial openness) to highlight the need to tailor policy priorities.
Series: Staff Discussion Notes No. 14/6
Subject(s): Emerging markets | Economic growth | Demand | Productivity | Fiscal reforms

Publication Date: June 12, 2014
ISBN/ISSN: 9781498327664 Format: Paper
Stock No: SDNEA2014006 Pages: 37
US$10.00 (Academic Rate:
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