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Nouriel Roubini - Trouble in Emerging Market Paradise

July 23, 2013


NEW YORK – During the last few years, a lot of hype has been heaped on the BRICS (Brazil, Russia, India, China, and South Africa). With their large populations and rapid growth, these countries, so the argument goes, will soon become some of the largest economies in the world – and, in the case of China, the largest of all by as early as 2020. But the BRICS, as well as many other emerging-market economies – have recently experienced a sharp economic slowdown. So, is the honeymoon over?


Brazil’s GDP grew by only 1% last year, and may not grow by more than 2% this year, with its potential growth barely above 3%. Russia’s economy may grow by barely 2% this year, with potential growth also at around 3%, despite oil prices being around $100 a barrel. India had a couple of years of strong growth recently (11.2% in 2010 and 7.7% in 2011) but slowed to 4% in 2012. China’s economy grew by 10% per year for the last three decades, but slowed to 7.8% last year and risks a hard landing. And South Africa grew by only 2.5% last year and may not grow faster than 2% this year.

Many other previously fast-growing emerging-market economies – for example, Turkey, Argentina, Poland, Hungary, and many in Central and Eastern Europe – are experiencing a similar slowdown. So, what is ailing the BRICS and other emerging markets?

Continue reading here.

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Rating: 1.8/5 (4 votes)


AlbertaSunwapta - 1 year ago
The first voter gave this piece only 2 stars! Must have been a hate mongering day trader or a gold bug.

The article is actually quite good. Commodities have driven up a number of economies and we just have to look back to the 1970s and 80s to see how that cycle ended.

or read what Buffett has to say about commodities.
Calixtoblowfly - 1 year ago

"The first voter gave this piece only 2 stars! Must have been a hate mongering day trader or a gold bug."

Screw off. Maybe it's just someone who has actually followed that nitwit for the last few years.

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