Developing nations growth weakening, says World Bank

Stat of the day: 5.3%. Despite their strength relative to stagnating developed economies, newly industrialising nations' (NICs) economies are slowing down, thanks to the global financial crisis.

by Michael Northcott
Last Updated: 09 Oct 2013

Booming growth in developing nations was only going to last so long if several of the major eurozone economies fell back into recession and demand for imported goods took a dip. And the World Bank has now confirmed this suspicion, saying that developing economies’ growth will fall to 5.3% this year from 6.1% in 2011. 

Its forecast has been influenced by the spiralling debt crisis in Europe. Spain is the continent’s fourth-largest economy and the latest to suffer a major recession and banking collapse. It has dampened the market for goods produced in India, China and Brazil. The same chill is being felt from Greece (which is practically broke), and even better off countries’ appetite for imports is waning.

With eastern juggernauts feeling the pinch, Merkel and Friends will need to combat this crisis as quickly as possible, or risk sinking deeper to the mire…

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