Lombard Odier banker: Russia’s slowdown has nothing to do with “middle income trap” | EmergingMarkets.me:
"Swiss bank Lombard Odier’s investment chief has brushed aside a common theory that blames Russia’s current economic slowdown on a “middle income trap”, a situation where a rapidly developing economy practically stalls when incomes reach a certain level.
The source of the problem are balance of payments (BOP) dynamics, Paul Marson argued at a press breakfast in Moscow last week in comments requested by EmergingMarkets.me.
BOP deficits in the West that had been precipitated by the world financial crisis brought about BOP surpluses in emerging markets, including Russia, while today’s contracting Western deficits mean shrinking surpluses in emerging market countries, he explained."
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