.Feb 16, 09
The slump that has swept through developed nations like the UK, the eurozone and the United States is hitting the world’s emerging economies with a speed and ferocity that has shocked even the most pessimistic analysts.
Until recently, many investors and economists thought such countries could provide a bulwark against the collapse in growth elsewhere. Instead, the latest data suggests that emerging economies as a group actually contracted late last year, and will likely shrink further in 2009.
The pace of the turnaround has caught policymakers and investors off guard. In a matter of months, key gauges of growth in trade and industrial production in a number of countries went from acceptable to alarming – even domestic demand is suffering.