Emerging markets: staying competitive amid slowing growth
- While emerging economies continue to drive global growth, almost all indicators for key emerging markets (EMs) are weakening
- Global growth, including that of EMs themselves, has slowed in recent months as effects from Euro Area financial crisis spillover
- Euro Area crisis will continue to adversely impact global business confidence, trade, financial markets, and capital flows
- Past monetary policy tightening efforts have overshot the mark in some of the largest emerging economies, such as Brazil and India
- Exports are an imperfect measure of competitiveness in emerging markets, as EMs’ role in the global value chain is bigger and more complex than mere export numbers
- Productivity and innovation are key to managing growth slowdown
