Article Finds Shift in World Growth Patterns Will Keep Emerging Market Economies Strong
While record-high oil prices and a U.S. recession are causing a slowdown in most industrial countries and in the global economy, record-high commodity prices and the shifts in world growth patterns are likely to keep most emerging markets on the rise, said Standard & Poor’s Ratings Services in a special report.
The article, entitled “Growing Emerging Markets Reduce The Global Impact Of The U.S. Recession,” examines the trade and financial flows between industrial and emerging markets and shows that the world’s economies are more tightly entwined than they have ever been.
“High commodity prices are a problem for the industrial countries, almost all of which are commodity importers, but a boon to the many emerging economies that are net exporters of commodities,” said Standard & Poor’s chief economist David Wyss. “While Latin America and the OPEC countries are the greatest beneficiaries, sub-Saharan Africa is also a winner, averaging 5.4% real growth over the past five years, perhaps its best performance in history. Although we think commodity prices will moderate from current levels, they will remain high enough to keep these economies strong,” he added. Please visit www.standardandpoors.com/beyondbric for more information.
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