"The IMF’s latest World Economic Outlook makes pretty grim reading for emerging markets. The Fund has cut half a percentage point from its projection for overall EM growth for 2013, and 0.4 percentage points off its 2014 forecast – they are now 4.5 and 5.1 per cent, respectively.
And it’s not all China. The big downward revisions for 2013 are India (-1.8 percentage points), Mexico (-1.7), and Russia (-1.0). But the real meat of the IMF’s report is a big section entitled “What Explains the Slowdown in the BRICS?”. The answer isn’t very pretty.
Explore the Fund’s report away from the headline figures, and as the chart below shows, the drop in growth levels since 2010 for EMs as a whole are largely Bric-led. The Fund notes that “Emerging market and developing economy growth rates are now down some 3 percentage points from 2010 levels, with Brazil, China, and India accounting for about two-thirds of the decline.”
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| Source: IMF |
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