Home / Knowledge / News / Textiles / World Bank flags continuing slowdown in emerging markets
World Bank flags continuing slowdown in emerging markets
10
Dec '15
As the US Federal Reserve considers an imminent rise in interest rates ahead of 2016, emerging markets face their fifth consecutive year of slowing growth and a possibly longer period of sluggish performance than previously thought, according to a new World Bank Policy Research Note: Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?

Since 2010, emerging market growth has been buffeted by global headwinds such as weak international trade, slowing capital flows, and slumping commodity prices, external challenges which have compounded domestic problems including blunted productivity and bouts of political uncertainty.

“After enjoying years of enviable economic performance, emerging markets are coming under strain, with a marked divergence in growth among them,” said World Bank Chief Economist and Senior Vice President Kaushik Basu. “As some of these economies slow down, the goal of eradicating extreme poverty will become harder as it burrows in and becomes more concentrated in regions most affected by conflict.”

The slowdown comes after a golden period of expansion for emerging markets. In the two decades beginning in the early 1980s, emerging markets almost doubled their contribution to world GDP, acting as the main engine of global economic expansion, and accounting for about 60 per cent of global growth during 2010-14.

However, emerging market growth has been fading steadily since 2010, slipping from an average 7.6 per cent in 2010 to a projected less than 4 per cent this year. China, the Russian Federation, and South Africa have all logged three consecutive years of slowing growth.

“The emerging market economies of today are surely not the crisis-prone countries of the 1980s or 1990s,” saidAyhan Kose, Director of the World Bank's Development Prospects Group and co-author of the new report. “However, given the persistent factors that have driven the slowdown so far, and the significant global risks going forward, emerging markets will want to adopt policies to promote growth as quickly as possible.”

Countries could counter the growth slowdown in different ways, depending on the causes of the weaker growth and the policy tools available to them. Limited space for counter-cyclical policies in many emerging markets suggest that structural reforms will be an important ingredient of any policy response.

“Structural reforms will be key to kick-start growth in emerging markets. Particular emphasis should be given to improvements in governance, which can lift growth considerably,” said Franziska Ohnsorge, World Bank Global Macroeconomic Trends Team manager and co-author.

The slowdown brings serious risks. One notable concern is that a spike in financial volatility could halt or reverse capital flows to emerging markets, which in turn could stop growth in its tracks, and hamper global and national efforts to create jobs, raise incomes, and further reduce extreme poverty and boost shared prosperity, the report said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search