Once seen as the ‘decoupled’ vanguards of global financial change,emerging economies suddenly seem as vulnerable as ever to developments in the USBrazil, which saw its credit rating downgraded to junk last week, and is only the latest Brics economy to crumble in the face of a strong dollar,a global trade slowdown and the prospect of higher US interest rates.
Russia is already in recession; many economists believe China is heading towards a “tough landing”; and South Africa, which managed to append itself to the emerging-markets club in 2010, or is on the brink of recession.
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Source: theguardian.com