World Bank Warns on Emerging Markets |
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June 22,2009
Leading developed nations are misguided in focusing efforts on restoring demand in their own economies, the World Bank will say on Monday.
Leading developed nations are misguided in focusing efforts on restoring demand in their own economies, the World Bank will say on Monday.
This is because emerging markets – suffering a severe shortage of foreign funds – are fundamental for a return to global growth.
In its annual Global Development Finance report, the World Bank expects private capital flows to developing countries to fall almost three-quarters this year to $363bn (€260bn, £220bn) from a $1,200bn peak in 2007.
The drop in credit flows will undermine investment in emerging and developing economies, it says, with a consequent hit on rich country exports of capital-intensive goods – one of the sectors hardest hit in the global recession.
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