Rapid-Growth Markets Forecast: October 2013
New challenges deepen need for reform
The narrative of the global economy appears to have taken a turn. Since the start of the world’s financial crisis, the mature economies have struggled with recession, budget cuts and then slow growth. The emerging markets have been much more stable, withstanding the global storm and posting impressive GDP growth rates.
However, 2013 has so far told a different story. While things are looking up in mature markets, the emerging economies are looking less resilient. With the notable exception of China, GDP growth in the second quarter of the year is showing a declining trend across our rapid-growth markets (RGMs). We now expect growth next year in RGMs to be 4.7%.
Our rapid-growth markets may be feeling buffeted by a global storm that has long been affecting their mature market counterparts. But they still have the power to write the next chapter of their story.
With the right policy responses to the immediate challenges they face, and a determination to continue reforming their economies, they can continue to build a future based on sustainable growth.