Due to growth of the US dollar and a fall in prices for raw assets, economic growth rates of developing countries contracted to the 6-year low.
Experts at several research companies suppose that economic slowdown of emerging markets may hamper the global economic growth on the whole.
IMF Managing Director Christine Lagarde confirms these worries. She said that the world should prepare for the period of slow economic growth rates, heavy debts, and high unemployment. However, Ms. Lagarde added that such a gloomy outlook will take place only if authorities do not adopt the needed measures.
A drop in prices for raw assets undermined income of the largest emerging countries, such as Russia and Brazil. Developing countries, including China, South Korea, Malaysia, and Thailand, were the first to experience great capital outflows owing to the ongoing strength of the US dollar.
Capital Economics predicts that average GDP growth rate in emerging markets will amount to around 4% in the first quarter of 2015. This is the lowest reading since 2009 that is even worse than the print for the fourth quarter of 2014.
Other analyst groups made similar forecasts about the minimum growth rates since 2009. Speaking of the first quarter, GDP is anticipated to climb 6.8% in China, 2% in Mexico and drop 1.24% in Brazil.
